Should I buy Treasury bills today?

Three-month Treasury bills currently yield about 3.78% — 1.1 points above the market’s inflation expectation of 2.64%. That is a positive real return on cash, and Feddecision’s Money Score rates today 9/10 for savers.

Rolling short bills keeps your yield floating with the Fed, with the market leaning toward higher rates. T-bill interest is also exempt from state and local income tax, which lifts the after-tax yield above a same-rate bank account in most states.

The tradeoff is against locking: a 1-year CD locks 4.10% no matter what the Fed does. Under the current market-implied path, locking edges out floating over the next year.