The LIBOR is expected to be higher than the rate covered on T-bills. The government subsidizes rate meaningfully affects both of these rates, however interbank loaning rates likewise affect the LIBOR. Different trades and other global exchanges utilize the London Interbank Offered Rate (LIBOR). T-bill rates are expected to be lower than LIBOR. This is on the grounds that the LIBOR is the rate that banks use while loaning cash to one another, and banks are generally able to loan cash to one another at a more prominent rate than the rate at which the public authority gets cash.

Q: Is the assumption that the US Treasury has less risk than banks?