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In the T-bill secondary market the ask yield will normally be less than the bid yield. True or False
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In the T-bill secondary market the ask yield will normally be less than the bid yield. True or False

User Rinku
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1 Answer

6 votes

Answer:

TRUE

Step-by-step explanation:

Treasury moved from a competitive pricing market to a specific price offer, since the latter reduced investor's average sale price and investors want Treasury bill in less than their bid value

If treasury bill goes to sell in secondary market then investors wants to get their investment back , that's why treasury bill yield less than normally yield.

User Muhammad Sadiq Alvi
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