Treasury bills

Securities issued by the U.S. government. T-bills normally have fixed terms; that is, the purchaser cannot take possession of the accrued interest for a fixed period of time after purchase. T-bills are auctioned by the Treasury each week; the auction determines the six-month interest rate.

Treasury bill

A short-term debt security of the U.S. government that is sold in minimum amounts of $10,000 and multiples of $5,000 above the minimum. Bills with 13-week and 26-week maturities are auctioned each Monday, and 52-week bills are sold every 4 weeks. These obligations, which are very easy to resell, may be purchased through brokers, commercial banks, or directly from the Federal Reserve. Also called T bill. See also bank-discount basis, certificate of indebtedness, Form PD 4633-1.