Treasury Bill (T-Bill)

A Treasury Bill (T-Bill) is a short-term debt security issued by the U.S. government with maturities ranging from a few days to one year. T-Bills are sold at a discount to their face value, and investors receive the full face value at maturity. The difference between the purchase price and the face value represents the investor’s return.

Key Features:

• Low risk since they are backed by the U.S. government
• Highly liquid, easily bought and sold in the market
• No interest payments (returns come from price appreciation)

T-Bills are commonly used by investors looking for traditionally safer, short-term investment options. See also:  Treasury Bond (T-Bond) Bonds and Bond Yield