Search Dictionary

Treasury Bills, T-Bills

Treasury bills are sold at public auctions every week by means of a competitive bid. The interest rate paid for any issue is determined by this auction process. Treasury bills are also known as T-Bills.

4-week bill (Announced Monday, auctioned Tuesday, settled Thursday)
3-month bill (aka 13-week bill). (Announced Thursday, auctioned Monday, settled Thursday)
6-month bill (aka 26-week bill). (Announced Thursday, auctioned Monday, settled Thursday)
12-month bill (aka 52-week bill). (Announced Thursday, auctioned Monday, settled Thursday)

Treasury bills range in maturities from 4 to 52 weeks. These bills are always sold at a discount to face value. The difference between the sale price and the redemption value is the interest that a buyer will earn on the bill.

Bills sell in minimum increments of $100 face value. i.e. the amount you will pay for the bill will be less than that but the maturity value will be in those increments.

Compare the following Treasury instruments:

Check the Economic Events Calendar to see if this or other announcements are taking place in the next 5 days.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 25 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.

Don't lose this free content. If you're receiving value from this site then donate to help support the costs of running the server.

Make a recurring donation of only $29/month and get access to all our premium features.

(Premium membership is only $29/month and gives you access to all our premium features.)