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Treasury bills
Treasury bills definition - finance
Short-term debt obligations issued by the U.S.
Treasury that matures in 3 to 12 months. Common maturities for T-bills include
13-, 26-, and 52-weeks. Typically, they are sold weekly to institutions, but
individuals also can buy T-bills through the Bureau of Public Debt. Because
they are obligations of the U.S. government, T-bills are considered to be risk
free. The minimum purchase amount is $1,000, with bids made in multiples of
$1,000. Generally, noncompetitive bids from one person may not exceed $1
million for Treasury bills or $5 million for a Treasury note or bond offering.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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