Treasury Bill - T-Bill

What does it mean?
A U.S. government debt security with a maturity that is less than one year. Treasury bills are issued through a competitive bidding process at a discount from par. This means they do not pay fixed interest payments like most bonds do.

In Other Words...
If a 90 day T-bill is priced at $9,800, then you pay that amount and, in 90 days, you will receive $10,000.

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Related Terms
Banker's Acceptance | Defensive Investment | Discount | Government Security | Money Market | Off-the-run Treasuries | On-the-run Treasuries

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