U.S. Treasury’s Payday Loan Rate

 

From Yahoo Finance:

“The Treasury Department auctioned $15 billion in one-day cash management bills on Friday as its cash balance remains under pressure.

The bills, which carry a 5.145% investment rate, will be issued Monday (June 6) and mature on Tuesday, according to the Treasury. Bids totaling $61.6 billion were tendered.

This is the first time since 2007 that one-day bills were auctioned, according to CNN.”

Moral of the story:   When liquidity is tight, everybody has to pay up. even Uncle Sam.

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