XF-6DEK4OZ-U Liquidity, taxes, and short-term treasury yields
Abstract
This article investigates differences in yields on identical Treasury notes and bills and shows that they reflect differences in liquidity (immediacy) risk and taxes. It proposes an empirical measure for differences in the liquidity risk of notes and bills: the volatility of the underlying rate times the ratio of bills' turnover to notes' turnover. Because differential taxes affect sellers but not buyers of bills and notes, the results reject, free of informational problems, the hypothesis that the notes' demand curve is horizonta. Note-bill yield differences also decrease with inventories of notes—the less liquid asset.
Source: resolved
Verification
XFIDs are content-addressed: these SHA-256 fingerprints let anyone confirm a copy of this document is identical to what XFID retrieved on 5 May 2026 — independent of this registry.
The canonical-content hash survives re-downloads, URL moves, and byte-level re-encodes: the same disclosure text always resolves to this XFID.
Topics
Cited by (6)
Other RESEARCH documents in the registry that cite this work.
- Are green bonds environmentally friendly and good performing assets? (2020) Abstract
- The Effect of Pro-Environmental Preferences on Bond Prices: Evidence from Green Bonds (2019)
- The green bond premium (2017) Abstract
- How Does Liquidity Affect Government Bond Yields? (2010) Abstract
- Comparing possible proxies of corporate bond liquidity (2005) Abstract
- The determinants of trading volume of high-yield corporate bonds (2000) Abstract
How to Cite This Record
Use the XFID in citations to create a stable, permanent reference that resolves to this registry entry regardless of the source URL.
JSTOR (1994). Liquidity, taxes, and short-term treasury yields. XFID: XF-6DEK4OZ-U. Retrieved from https://xframework.id/XF6DEK4OZU
XF-6DEK4OZ-U