The past 12 months have been a rollercoaster ride for the financial markets, with volatility and uncertainty at an all-time high. Despite all the instability, 1 year treasury bill rates remain low, making them a desirable option for investors.

As of July 2020, 1 year treasury bill rates are hovering around 0.13%, which is significantly lower than their peak in the beginning of the year (1.50%). These low rates reflect the Federal Reserve’s efforts to keep the economy afloat, which has resulted in a predictable and reliable investment option for investors.

With 1 year treasury bills, investors can benefit from the security of knowing their money will stay stable for a whole year. Unlike stocks or bonds, whose prices fluctuate with market forces, 1 year treasury bills guarantee that investors will receive the same return at the end of the year, as long as they remain invested. This makes 1 year treasury bills the perfect option for conservative investors who are looking for a safe investment with minimal risk.

Furthermore, investors can use 1 year treasury bills to actively preserve their capital while still generating income. Compared to other investments such as stocks or bonds, 1 year treasury bills provide investors with a relatively steady stream of income with low levels of risk. This makes them an attractive option for investors looking for conservative exposure to the financial markets.

Finally, 1 year treasury bills can serve as excellent collateral for additional investments or loans. Banks often accept 1 year treasury bills as collateral for loans, and they can also be used to borrow against. This makes them an ideal option for those who are looking to leverage their capital and potentially generate higher returns.

In conclusion, 1 year treasury bills provide investors with a reliable and low-risk option for preserving their capital and generating income. As the financial markets remain volatile, 1 year treasury bills remain a desirable option for conservative investors.