Treasury Bill - T-Bill

Treasury Bill - T-Bill

A U.S. government debt security with a maturity that is less than one year. Treasury bills are issued through a competitive bidding process at a discount from par. This means they do not pay fixed interest payments like most bonds do.

Notes:

If a 90 day T-bill is priced at $9,800, then you pay that amount and, in 90 days, you will receive $10,000.

See also: Banker's Acceptance, Defensive Investment, Discount, Government Security, Money Market, Off-the-run Treasuries, On-the-run Treasuries