Treasury Bills

Treasury bills, also known as T-bills, are short-term debt securities issued by the U.S. government. They are sold in denominations of $100, $1,000, $5,000, and $10,000 and have maturities of four weeks, thirteen weeks, twenty-six weeks, and fifty-two weeks. Treasury bills are sold at a discount from their face value and are redeemed at face value. They are considered one of the safest investments available, as they are backed by the full faith and credit of the U.S. government.

History of Treasury Bills

Treasury bills have been issued by the U.S. government since the late 1700s. They were originally issued to finance the Revolutionary War and were known as “Continental Bills.” In the early 1800s, the U.S. government began issuing Treasury bills to finance the War of 1812. Since then, Treasury bills have been issued to finance the government’s operations and to manage the national debt.

Treasury bills are issued through a competitive bidding process. Investors submit bids for the amount of Treasury bills they wish to purchase and the lowest accepted bids are awarded the securities. Treasury bills are sold on a weekly basis and are auctioned off by the Federal Reserve Bank of New York.

Comparison of Treasury Bills

Summary

Treasury bills are short-term debt securities issued by the U.S. government. They are sold in denominations of $100, $1,000, $5,000, and $10,000 and have maturities of four weeks, thirteen weeks, twenty-six weeks, and fifty-two weeks. Treasury bills are sold at a discount from their face value and are redeemed at face value. They are considered one of the safest investments available, as they are backed by the full faith and credit of the U.S. government. For more information about Treasury bills, visit the websites of the U.S. Treasury, the Federal Reserve Bank of New York, and the Securities and Exchange Commission.

See Also

• Treasury Bonds
• Treasury Notes
• Treasury Inflation-Protected Securities (TIPS)
• Savings Bonds
• Municipal Bonds
• Corporate Bonds
• Government Bond Funds
• Money Market Funds
• Certificates of Deposit (CDs)
• Treasury Strips

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