What Is a Treasury Bill (T-Bill)?
A Treasury bill (T-bill) is a short-term U.S. government debt obligation backed by the U.S. Department of the Treasury. Terms range from four to 52 weeks. T-bills are issued at a discount from the par value, also known as the face value.
Treasury bills are usually sold in denominations of $100. However, some can reach a maximum denomination of $5 million in noncompetitive bids. The Treasury sells T-bills during auctions using a competitive and noncompetitive bidding process.
Key Takeaways
- A Treasury bill (T-bill) is a short-term debt obligation backed by the U.S. Department of the Treasury with a one-year maturity or less.
- Treasury bills are usually sold in denominations of $100 and can reach a maximum denomination of $10 million.
- T-bill rates depend on interest rate expectations.
Investopedia / Michela Buttignol
How To Buy Treasury Bills
The U.S. Department of the Treasury issues…
