The higher yields of federal agency securities relative to T-bills is attributed mostly to the lower marketability of agency securities.

Name: The higher yields of federal agency securities relative to T-bills is attributed mostly to the lower marketability of agency securities.
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Federal agency securities typically offer higher yields than T-bills due to their lower marketability and slightly higher risk, as they are not backed by the full faith and credit of the U.S. government like T-bills.

The Higher Yields of Federal Agency Securities Relative to T-Bills