The US Treasury Department, through the Bureau of Public Department issues the Treasury Bills, a common American term for the Treasury Bills. These bills are almost like governmental bonds, having the full backing of the Federal Government.
These are usually considered to be one of the safest investment options in the US and Canada as well, where too they are issued with the most comprehensive coverage promised by the government.The maturity periods of these T-Bills are never more than a year in the US. The term periods may vary from one to three months or four to twenty-six weeks.
The prices start at a thousand dollars and the maximum is five million dollars. In Canada the maturity periods are from one month to twelve months. Investors can put in amounts of five thousand dollars for a period of three months to one year, or twenty-five thousand for a term of one to two months.
In Canada the business is done at face value. In the US the bills are sold at less than the actual face value.
Since the bills do not guarantee any return in terms of interest, the discount seems to be the catch.
The appreciation of these bills is the actual benefit or yield for the holders. There are no guarantees of a steady return coming through like what a coupon bond may give the holder.
The Canadian T-Bills ensure lucrative returns. Each and every hard-earned penny put in by the investors, is guaranteed by the Canadian government. They usually provide high returns, if the holder keeps them for the entire term. There is an even bigger advantage with these bills in Canada, though. The holder there has the right to sell these off, whenever the market price of these commodities goes up.
Thus it is obvious that besides the eventual benefits, the holders are also able to cash them in if and when the need to do so arises. There is one more important feature of these Canadian T-Bills. If the maturity period is a small one the holder gets some nice and smart gains. The quality of being open to be marketed is a plus point of the T-Bills in Canada.
|Treasury Bill Definition||Treasury Bill Interest Rate|
|Treasury Bill Current Rate||Treasury Bill Price|
|Treasury Bill Rate||Treasury Bill Yield|
|Canada Treasury Bill||Day Bill|
|Discount Bill||Treasury Bill History|
|US Treasury Bill|
Last Updated on : 18th July 2013