Treasury bill

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Treasury Bill

A debt security backed by the full faith and credit of the United States government with a maturity of one year or less. Very commonly, T bills have a maturity of a few weeks to a few months. They are purchased at a discount and then redeemed for par; T bills do not pay interest. For example, an investor may purchase a $5,000 bill for $4,500. While he/she will not earn any coupon payments, he/she will receive $5,000 in no more than a year. They are low-risk, low-return investments. Private investors may purchase T bills in small quantities, but the bulk of the T bill market comes from institutional investors, especially banks. See also: Treasury note, Treasury bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Treasury bill

A short-term debt security of the U.S. government that is sold in minimum amounts of $10,000 and multiples of $5,000 above the minimum. Bills with 13-week and 26-week maturities are auctioned each Monday, and 52-week bills are sold every 4 weeks. These obligations, which are very easy to resell, may be purchased through brokers, commercial banks, or directly from the Federal Reserve. Also called T bill. See also bank-discount basis, certificate of indebtedness, Form PD 4633-1.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Treasury bill (T-bill).

Treasury bills are the shortest-term government debt securities.

They are issued with a maturity date of 4, 13, or 26 weeks. The 13- and 26-week bills are sold weekly by competitive auction to institutional investors, and to noncompetitive bidders through Treasury Direct for the same price paid by the competitive bidders.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

Treasury bill

a redeemable FINANCIAL SECURITY bearing a three-month redemption date which is issued by the Bank of England. Some Treasury bills are purchased on tap at undisclosed sums by government departments with temporary cash surpluses, but the vast majority are sold at periodic tender auctions to DISCOUNT HOUSES and overseas banks. Treasury bills bear a nominal face value which is repaid in full on redemption, but the price paid for them on issue depends on the outcome of a competitive tender, with discount houses and overseas banks bidding against each other for an allocation. The Treasury bills which are bought by the discount houses are usually then sold (rediscounted) in the DISCOUNT MARKET to other buyers, principally to COMMERCIAL BANKS which hold them as part of their ‘liquidity base’ to support their lending operations. Treasury bills are issued alongside BONDS both to raise finance for the government to cover BUDGET deficits and also as a means of controlling the MONEY SUPPLY and level of INTEREST RATES. See MONETARY POLICY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

Treasury bill

a FINANCIAL SECURITY issued by a country's CENTRAL BANK as a means for the government to borrow money for short periods of time. In the UK, three-month Treasury bills are issued by the BANK OF ENGLAND through the DISCOUNT MARKET. Most Treasury bills are purchased initially by the DISCOUNT HOUSES and then, in the main, sold (rediscounted) principally to the COMMERCIAL BANKS, which hold them as part of their liquidity base to support their lending operations.

Treasury bills constitute a significant part of the commercial banks’ RESERVE ASSET RATIO. Thus, the monetary authorities use Treasury bills to regulate the liquidity base of the banking system in order to control the MONEY SUPPLY. For example, if the authorities wish to expand the money supply, they can issue more Treasury bills, which increases the liquidity base of the banking system and induces a multiple expansion of bank deposits. See also BANK-DEPOSIT CREATION, FUNDING, REPO RATE OF INTEREST, MONETARY POLICY COMMITTEE, PUBLIC-SECTOR BORROWING REQUIREMENT.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
According to the contract between the two parties, the foreign investor buys treasury bills for the same period agreed upon, and at the end of the period, the bank would be committed to convert the original amount, plus its interests, from the investment in treasury bills into US dollars at the exchange rate agreed upon while contracting.
Furthermore, the Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates.
The Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps the licenced commercial banks to gainfully invest their surplus funds, with the added advantage of ready liquidity through discounting and repurchase facilities.
The Central Bank of Egypt (CBE) issued treasury bills for 91 days worth EGP 6.25bn on behalf of the Ministry of Finance, in which the bank received bids of about EGP 14.4bn, which were accepted at the same value without increase.
--We should have in mind that every auction first implies indebtedness, and afterwards the country pays the debt to the banks based on the issued registered treasury bills from the previous period explains Nenovski.
According to the announcement, the treasury bills were priced to yield 2 percent, marginally lower than a 2.02 percent achieved in the previous similar sale in August.
The State Bank of Vietnam (SBV), Vietnam's central bank, has bought back VND12tn (USD633m) of treasury bills from domestic banks via open market operations, Dow Jones has reported, citing a central bank official.
In spite of the continued criticisms from experts and businessmen that the National Bank is thus extracting money from banks, nothing has yet come out of the suggestions for restricting the amount kept in the form of treasury bills. Bankers, however, say the economic risks are enormous and therefore they decide to invest in less risky securities.
NORDIC BUSINESS REPORT-29 July 2004-Danish central bank sells treasury bills for DKK12.3bn - report(C)1994-2004 M2 COMMUNICATIONS LTD
In a previous article about Treasury bonds (see "A Treasury Bond by Any Other Name," Moneywise, December 1999), we incorrectly stated the minimum denomination for Treasury bills, also called T-bills.
Treasury bills are popular investments among a wide range of investors, including nonresident aliens.
Muscat: Oman's central bank raised OMR55 million by way of allotting treasury bills on Tuesday.