Re:Coinbase suspending USDC:USD conversions over the weekend
by ptero on Saturday March 11, 2023 @08:03AM
(#35107957)
I agree with your conclusion: holding 3-month t-bills virtually isolates you from interest rate risk.
But not because rates do not change (they do, a lot: for example 3-month rate jumped by over 0.5% in 2 weeks of Oct 2022). But due to the short duration such change barely affects the remaining interest paid by each bill, which is what determines bill's price.
But not because rates do not change (they do, a lot: for example 3-month rate jumped by over 0.5% in 2 weeks of Oct 2022). But due to the short duration such change barely affects the remaining interest paid by each bill, which is what determines bill's price.