Treasury Bills

Glossary

Banking

Treasury Bills

Treasury bills, as a generic term, are short-term debt instruments issued by governments. In the specific case of the US government, Treasury Bills (T-bills) are short-term debt instruments whose maturity ranges from days to 52 weeks. They pay no interest in the form of a coupon but because they are predominantly sold at a discount to face value and mature at their face value, the investment return is generated by the price differential. The discount rate is set at T-Bill auctions. As of November 2021, there were USD3.786 trillion in US T-Bills outstanding.

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