T-bills

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/ˈtiː ˌbɪlz/
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Short-term Treasury debt securities used as low-risk, cash-like investments and quoted closely with money-market rates.

Examples

  • She holds T-bills that mature in three months.
  • The investor bought T-bills to keep cash in a low-risk place.
  • Some funds use T-bills as a cash-like investment.
  • New T-bills are sold through regular Treasury auctions.
  • At maturity, the T-bills paid their face value.

Similar words

money-market instruments
Treasury bills
Treasury securities
government bills
short-term Treasury securities

Meanings

Short-term Treasury securities

finance
neutral
Treasury bills, short-term debt securities issued by the U.S. Treasury and maturing in one year or less.

Examples

  • The investor bought T-bills to keep cash in a low-risk place.
  • New T-bills are sold through regular Treasury auctions.
  • She holds T-bills that mature in three months.
  • The T-bill rate rose after investors expected tighter policy.
  • Some funds use T-bills as a cash-like investment.
  • At maturity, the T-bills paid their face value.

Similar words

Etymology

From the initial T of Treasury plus bill, shortened from Treasury bill in financial use.

FAQ

What does T-bills stand for?

T-bills stands for Treasury bills.

Are T-bills the same as Treasury bonds?

No. T-bills mature in one year or less, while Treasury bonds are long-term securities.

Do T-bills pay coupon interest?

No. T-bills do not pay regular coupon interest. The return usually comes from buying below face value and receiving face value at maturity.

What is the singular form of T-bills?

The singular form is T-bill.

Who issues T-bills?

The U.S. Department of the Treasury issues T-bills.

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