Money Markets
Money Market Yield
Definition
What is Money Market Yield?
A standardised annualised yield used to compare short-term instruments.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. converts a bill's return into money market yield before comparing deposits.
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Related Terms
Money Markets
Treasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.
Money MarketsCommercial Paper
Short-term unsecured debt issued by a company.
Money MarketsCertificate of Deposit
A time deposit or tradable bank instrument that pays interest over a stated term.
Fixed Income StrategiesMaturity Ladder
A portfolio of debt instruments with maturities spread across regular intervals.