T-bill rates still have a long way to climb to even get to a measly 1%. As you know, I have used this rate as a measure of how well the economy was NOT doing.Well, if we are to believe that there is anything sustainable going on in the economy as the celebrated 'recovery' - born of monetary alchemy - takes hold, the IRX is going to rise and tell the Fed what it needs to do as the hazards veer to the other end of the spectrum with regard to the inflation-deflation game of hide the cheese.
This will either unwind into utter economic failure or we will have continued recovery with an ever more intense round of inflation problems attending the festivities. In the latter case, the t-bill is the best option for treasury paper, as the longer maturities are gonna get killed.
