What Is a United States Treasury Bill?


A treasury bill is a short-term debt instrument issued by the U.S. Department of the Treasury to raise money to fund the government's operations. Treasury bills are sold at a discount and mature in one year or less. They are often used by investors as a safe, liquid investment that can be traded easily. Treasury bills are considered to be the safest asset class available to investors because they are backed by the full taxing power of the United States federal government.

There are three types of treasury bills: 3-month bills, 6-month bills and 12-month bills. Investors can also buy T-bills with longer terms such as 2 year or 5 year T-bills.

The interest rate of treasury bills is determined at auction, but it's usually very close to the prevailing rate on other short-term investments.

There are three types of treasury bills:

a) Bills maturing in one year or less

b) Bills maturing between one and ten years

c) Bills maturing after ten years.


The United States Treasury Department is the federal agency responsible for the production of all United States currency. The Bureau of Engraving and Printing (BEP) produces paper money, or "bills," and the U.S. Mint produces coins, or "currency." The BEP also manufactures paper securities such as savings bonds and other government securities.

The United States Treasury Bill auctions are a way for the US government to borrow money from investors. The auctions allow the US government to borrow money at a fixed interest rate for a specific period of time.

For example, if an investor buys a 10-year treasury bill, they will receive $10,000 in interest payments over the course of 10 years. However, if the investor wants their payments to be more frequent and in smaller increments, they can invest in treasury bills that have shorter terms.

The United States Treasury Department auctions off securities to the public. The most common type of security sold is the Treasury Bill.

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Auctions are held weekly on Mondays at 11:30 am Eastern Time. Bills can be purchased in denominations ranging from $1,000 to $5 million. Auctions last for five minutes and all bids must be submitted during that time.

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