3-Month Treasury Yield

Par yield as of September 9, 2026 · official U.S. Treasury data

3-Month Treasury
3.95%
+1 bp today
vs 1 Month Ago
+6 bp
August 10, 2026
vs 1 Year Ago
-12 bp
September 5, 2025
3M Treasury yield history
3.503.754.004.25Sep 8Oct 22Dec 8Jan 23Mar 10Apr 22Jun 5Jul 22Sep 33M
3M

Recent 3-Month Treasury Yields

DateYieldChange
September 9, 20263.95%+1 bp
September 8, 20263.94%+3 bp
September 4, 20263.91%+2 bp
September 3, 20263.89%-3 bp
September 2, 20263.92%+0 bp
September 1, 20263.92%+1 bp
August 31, 20263.91%+1 bp
August 28, 20263.90%+6 bp
August 27, 20263.84%-1 bp
August 26, 20263.85%

The 3-month Treasury yield, from the 13-week bill, is the closest thing finance has to a genuine risk-free rate. It is the benchmark against which cash returns are measured, the short leg of the recession signal the Federal Reserve’s own researchers favour, and the anchor for a large share of academic and practical valuation work.

The Textbook Risk-Free Rate

When a valuation model calls for a risk-free rate, the 3-month bill is usually what is meant. The maturity is short enough that interest-rate risk is negligible and the issuer is the dollar’s own government, so in dollar terms the return is as close to certain as a financial asset gets.

That role gives the 3-month an outsized presence in finance far beyond the bond market. It appears in cost-of-capital calculations, in the Sharpe ratios used to judge fund performance, and in option pricing, where it stands in for the return on cash.

The 3m10y Recession Signal

The 2s10s spread gets the headlines, but Federal Reserve research has generally found the spread between the 3-month bill and the 10-year note to be the better recession predictor. The reasoning is that the 3-month tracks actual current policy rather than expectations about it, so the spread measures how restrictive policy is right now against what the market expects over the long run.

An inverted 3m10y therefore carries a slightly different message from an inverted 2s10s. It says policy is tight today relative to long-run expectations, whereas the 2s10s can invert on expectations alone. The two do not always invert at the same time, and the sequence between them is itself informative.

Where Cash Actually Lives

The 13-week bill is the workhorse of institutional cash management. Money-market funds, corporate treasuries and foreign central banks hold enormous quantities, rolling them continuously. That demand is largely insensitive to the yield on offer, because these holders need short government paper regardless of price.

For individual savers the same instrument is available through TreasuryDirect or a brokerage, and it functions as a three-month deposit with no bank credit risk and no state or local income tax on the interest.

What Moves the 3-Month Yield

Very little other than the Federal Reserve. Over a thirteen-week horizon there is almost no room for inflation expectations or term premium to matter, so the 3-month yield tracks the fed funds target closely, drifting slightly above or below it as the market prices the next meeting.

The exceptions are worth knowing. Heavy bill issuance when the Treasury rebuilds its cash balance can push yields up, and episodes around the debt ceiling have occasionally distorted bills maturing near a projected default date, causing yields to spike on securities the market fears could be paid late.

Where the 3-Month Sits on the Curve

MaturityYield1-Day Changevs 3M
1M3.81%+0 bp-14 bp
2M3.93%+2 bp-2 bp
3M3.95%+1 bp
6M4.01%+1 bp+6 bp
1Y4.17%+2 bp+22 bp
2Y4.43%+4 bp+48 bp
3Y4.49%+5 bp+54 bp
5Y4.61%+4 bp+66 bp
7Y4.71%+3 bp+76 bp
10Y4.83%+3 bp+88 bp
20Y5.28%+2 bp+133 bp
30Y5.28%+3 bp+133 bp

Related Maturities

FAQ

What is the 3-month Treasury bill yield?
It is the annualised return on a 13-week U.S. Treasury bill, shown here from the Treasury par yield curve and updated each business day. It is the shortest widely quoted point on the curve and the standard proxy for the risk-free rate.
Why is the 3-month Treasury called the risk-free rate?
Because it combines negligible interest-rate risk, thanks to the short maturity, with an issuer that controls the currency the debt is denominated in. In dollar terms the return is about as certain as any financial asset can offer, which is why valuation models use it as the baseline.
Which yield curve inversion matters more, 3m10y or 2s10s?
Federal Reserve research has generally favoured the 3-month against 10-year spread as a recession predictor. It compares actual current policy with long-run expectations, whereas the 2-year against 10-year spread compares two sets of expectations and can invert without policy being restrictive yet.
Is a 3-month Treasury bill a good short-term investment?
For money you know you will need within a few months it offers a known return, no credit risk in dollar terms and exemption from state and local income tax. It will not beat riskier assets over long periods, which is not what it is for.

Source: U.S. Department of the Treasury daily par yield curve — official public-domain U.S. government data, published once per business day. This page is information, not investment advice; see our disclaimer.