3-month Treasury yield

## What this measures

The constant-maturity 3-month Treasury yield is the annualized interest rate investors require to hold a Treasury bill that matures in three months. It sits at the front end of the yield curve and reflects short-term funding conditions.

## Why it matters

This rate underpins the cost of short-term borrowing for banks, corporates and governments. When it rises, floating-rate debt becomes more expensive, cash management yields improve, and money-market funds earn more. When it falls, liquidity becomes cheaper but return on idle cash declines.

## How to read it

A rising yield signals tighter short-term funding conditions or higher policy rates; a falling yield indicates easing or flight to safety. Compare it to the federal funds rate to gauge policy transmission, or to longer tenors to assess curve shape and term-premium expectations.

## What it does not say

This yield does not predict Fed policy changes or indicate long-term inflation expectations. It reflects the market price today for a short maturity and says nothing about credit risk in private markets.

## Source

Published by the Federal Reserve in the H.15 Statistical Release, using Treasury's constant-maturity methodology. Palanor pulls this series from the FRED API nightly.