Treasury bill

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Related to U.S. Treasury Bill: Treasury Yield Curve, T Note

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 ?
Summary Statistics Data Frequency n Mean Standard JB ADF Lags Deviation Treasury Daily 13 028 5.1755% 2.8327% 4048 ** -2.7421 221 bill yield Weekly 12 721 5.1815% 2.8336% 831 ** -2.5218 42 Monthly 625 5.1816% 2.8326% 183 ** -2.3816 12 Federal Daily 18 873 5.7133% 3.4039% 7496 ** -2.2553 211 funds rate Weekly 12 695 5.7135% 3.3899% 1026 ** -2.4260 52 Monthly 619 5.7149% 3.3827% 222 ** -2.4230 11 Explanation: Exhibit 5 contains descriptive statistics of three-month U.S. Treasury bill yields and Federal funds rates.
After all, it's hard to argue that the large and liquid U.S. treasury bill market contributes to U.S.
Today, this shows up as investors' extrapolating of the historically highest volatility' of 2008 into [the future]." As a result of this flawed reasoning, perceived safe havens have reigned supreme as evidenced by huge flows into bonds, gold, U.S. Treasury bills, and hedge funds.
But no one obliged China to buy hundreds of billions of dollars of U.S. Treasury bills and bonds.
The company still has $213 million of the securities on its books, and says it has put its cash in U.S. Treasury Bills and Treasury-backed securities.
According to Pocha, one of the reasons that the United States had to prop up Fannie Mae and Freddie Mac was that so many foreign governments had invested their surplus in U.S. Treasury bills and in U.S.
dollar-denominated assets, particularly U.S. Treasury bills and bonds of the U.S.
Saudi Arabia has, over the past three decades, kindly recycled the cash sucked from the wallets of American SUV owners and sent much of the loot right back to New York to buy U.S. Treasury bills and other U.S.
Importing manufactured goods from China has hardly stalled America's economy, and the willingness of China's central bank to buy U.S. Treasury bills effectively allows this country to live beyond its means.
interest rates are expected to rise this year, which prompts global investors to shift investment out of emerging markets like Latin America and into less-risky U.S. Treasury bills. Higher interest rates in the United States also make Latin America's dollar-denominated debt more expensive to service.
Interestingly, foreigners are purchasing about two-thirds of the IOUs we are issuing for this debt in the form of U.S. Treasury bills.
Table 3 Six-month Forecast of Three-month U.S. Treasury Bills Date of Forecast Forecast Actual Error Year-end 1999 5.6% 5.9% -0.3% Mid-year 2000 6.1% 5.9% 0.2% Year-end 2000 5.4% 3.6% 1.8% Mid-year 2001 3.4% 1.7% 1.7% Year-end 2001 1.9% 1.7% 0.2% Mid-year 2002 2.2% 1.2% 1.0% Source: Wall Street Journal Table 4 Interest Rate Spreads and Economic Trends Market Spread 1999 2001 2003 Mid-2004 Yield Curve 0.3% -0.9% 2.9% 3.6% Low-grade Corporate 4.6% 8.2% 6.8% 2.9% Source: The Wall Street Journal and Global Indicators written monthly by the author.

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