Glossary term

Discount rate vs investment rate on T-bills

On , at the auction of the 8-week bill (a reopening), the high discount rate was 4.050% and the investment rate 4.132%.

Last updated . This page normally updates every day; the latest update is late.

High discount rate at the 8-week bill auction of 15 October 2026: 4.050%, above the median of the earlier auctions shown, 3.660%

24 8-week bill auctionsPer cent

High discount rate at the 8-week bill auction of 15 October 2026: 4.050%, above the median of the earlier auctions shown, 3.660%, 7 May 2026 to 15 Oct 2026

The linesLatest:

  • High discount rate4.050%
  • Investment rate4.132%

Each point is one 8-week bill auction; pointing at the chart shows its date and figures.

The linesLatest:

  • High discount rate4.050%
  • Investment rate4.132%
Inspect and compare dates
High discount rate and Investment rate at each 8-week bill auction, newest first
Auction dateHigh discount rateInvestment rate
4.050%4.132%
3.980%4.060%
3.990%4.071%
3.990%4.071%
3.920%3.999%
3.845%3.922%
3.750%3.824%
3.670%3.742%
3.655%3.727%
3.665%3.737%
Show 14 more rows
High discount rate and Investment rate at each 8-week bill auction, newest first (continued)
Auction dateHigh discount rateInvestment rate
3.710%3.783%
3.675%3.747%
3.795%3.871%
3.650%3.722%
3.635%3.706%
3.650%3.722%
3.660%3.732%
3.640%3.712%
3.610%3.681%
3.610%3.681%
3.615%3.686%
3.600%3.671%
3.610%3.681%
3.595%3.665%

Right now

High discount rate: 4.050% at the 8-week bill auction of , a reopening.

  • Investment rate 4.132%
  • Investment rate minus discount rate 8.2 basis points

Across auctions

4.050% is above the median of the 23 earlier 8-week bill auctions shown, 3.660%.

Of the 24 auctions shown, the highest was 4.050% on , the lowest 3.595% on .

Understanding discount rate vs investment rate on T-bills

Where it stands today

High discount rate: 4.050% at the 8-week bill auction of .

What does the term mean?

The discount rate of a Treasury bill is its discount from face value as a share of face value, on a year of three hundred and sixty days. The investment rate is what the price paid earns, on a calendar year; it is also called the bond-equivalent yield.

Read more

Why a bill has two rates

Bills pay no interest. They are sold below face value and pay face value at maturity. Bill auctions are bid in the discount rate, a convention from before computers. The investment rate restates the same price as a yield on the money actually paid, so it can be set next to a note or bond yield.

Which is higher

The investment rate is always higher. It divides by the price, which is below face value, and it counts a full calendar year. The gap grows with the rate and with the bill's length.

What to compare

  • A bill against a note or bond: use the investment rate.
  • A bill against earlier auctions of the same bill: either rate, as long as it is the same one each time. 500metrics names the rate in every sentence.

What it does not tell you

  • What a buyer earns after tax or after selling before maturity. Both rates assume the bill is held to maturity.

Drafted with AI assistance from official sources; checked against the sources listed below.

The numbers behind the chart

What were the figures at the latest auction?8-week bill (reopening), 15 October 2026
The 8-week bill (reopening) auction of 15 October 2026
FigureValue
High discount rate4.050%
Investment rate4.132%
Investment rate minus discount rate8.2 basis points
Which pages show these figures?

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