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Treasury bill

• All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury Bills (T-bills). The Treasury currently issues three-month and six-month T-bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth cash flows.

• A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

• A short-term financial security issued by the Government of Canada issued weekly on an auction basis, having varying maturities, generally under a year, and virtually no risk.

• A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt.

• Treasury bills, notes, and bonds. Federal government-backed debt securities; bills range in maturity from 3 months to one year; notes mature in one to 10 years; bonds mature in 10 to 30 years.

• A marketable U.S. government debt security with a maturity of less than one year. Treasury bills are issued through a competitive bidding process at a discount from par; there is no fixed interest rate. Also known as T bill.

• Debt obligations of the U.S. Treasury that have maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days, or 52 weeks.

• Are government obligations with less than 1 year to maturity. Original maturities of 3 months, 6 months, and one year (actually 52 weeks or 364 days). They do not pay any coupon interest. Instead, interest is paid by selling these securities as a discount. The difference between the market price and face value provides interest payments.
Price = 100(1 - Actual discount)
Actual discount = (Quoted discount) * M / 360 Where M is days to maturity.
Annualized interest rate = (100 / Price)^(365/M)-1

 
 Embedded terms in definition
 Basis
Cash flow
Cash
Competitive bidding
Competitive bid
Coupon
Debt securities
Debt security
Debt
Discount
Face value
Finance
Instruments
Interest payments
Interest rate
Interest
Market
Mature
Maturity
M
Par
Range
Risk
Securities
Security
T bill
U
 
 Related Terms
 Bill of exchange
Bill of lading
Cash management bill
Due bill
Inflation indexed treasury bond
T bill
Treasury bond
Treasury note
Treasury securities
Treasury stock
U.s. treasury bill
U.s. treasury bond
U.s. treasury note
U.s. treasury obligations treasuries

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