Treasury bills


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Treasury bills

Debt obligations of the US Treasury that have maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days, or 52 weeks. Treasury bills are sold at a discount from face value and do not pay interest before maturity. The interest is the difference between the purchase price of the bill and the amount that is paid to you either at maturity (this amount is the face value) or when you sell the bill prior to maturity.

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.
References in periodicals archive ?
MANAMA: Bahrain Bourse (BHB) is listing 15 treasury bill issues and short-term Islamic lease (Ijarah) sukuk worth BD982 million today.
CAIRO - 28 November 2018: Foreign investments in treasury bills (T-bills) recorded LE 210.21 billion ($11.71 billion) by the end of October, compared to LE 234.52 billion ($13.06 billion) by the end of September, according to data from the Central Bank of Egypt (CBE).
The Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps the licensed commercial banks to gainfully invest their surplus funds, with the added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the CBO.
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.
They are also said to have made a letter head allegedly from the CBK for Treasury Bills of Sh347 million, which they purported to have been issued by Maina Warui, the registrar, and National Debt Office at CBK.
The bank said that it has raised OMR62.81m through a treasury bill that has a maturity period of 91 days, from October 18 to January 17, 2018.
Meanwhile, the yield on treasury bills for 91 days declined to 20.33%, compared to 20.51% in the last issuance for the same term.
Introducing state bonds and selling them as financial instruments, according to the professor, is generally acceptable instrument in the developed countries, especially in the Western economies where countries issue state bonds, in a form of treasury bills or securities, in order to secure funds on the financial market for financing budgetary needs.
In parallel, despite the gradual return to markets with the issuance of three-year and five-year bonds this year, Athens runs a monthly treasury bills auction program to raise supplementary financing.
Global Banking News-November 8, 2010--SBV buys treasury bills worth VND12tn(C)2010 ENPublishing - http://www.enpublishing.co.uk
The National Bank of Macedonia (NBM) borrowed from banks 125 million euros by selling them treasury bills at an interest rate of 4.5 percent.
NORDIC BUSINESS REPORT-29 July 2004-Danish central bank sells treasury bills for DKK12.3bn - report(C)1994-2004 M2 COMMUNICATIONS LTD http://www.m2.com