Treasury Bills are an important term in the field of American economy, and the world of finance. They are also called T-Bills in the contemporary US lingo. The United States Department of Treasury could be said to be responsible for issuing these. The actual transaction however is executed by the Bureau of Public Department. They are essentially bonds issued by the US government.
Treasury Securities come in four separate denominations. They are Treasury Bills, Notes, Bonds, and Saving Bonds. With the exception of the Savings Bonds, the others are easy options to be had. They are huge favorites in the various secondary markets.
The Treasury Bills do not yield any interest before they mature. They are usually sold at discounts on their respective face values. In that respect they are almost like zero-coupon bonds. The discounts are given, so that at the time of maturity the consumer is satisfied with positive returns.
Investors in US consider these Bills to be amongst the safest forms of investment. The term periods could range from periods of 28, 91, to the maximum of a 182 days
Financial organizations like banks and primary dealers are the biggest consumers of the T-Bills.
| Treasury Bills (Debt Instrument)
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