“T-bill” refers to a Treasury bill, which is a short-term debt security issued by the U.S. government to finance its operations and pay for its expenses.
T-bills are issued with maturities ranging from a few days to 52 weeks and are typically sold at a discount from their face value, with the difference between the purchase price and the face value representing the investor’s return. T-bills are considered to be one of the safest investments available, as they are backed by the full faith and credit of the U.S. government and are exempt from state and local taxes. T-bills are widely used as a benchmark for short-term interest rates and are commonly held by individuals, institutional investors, and foreign governments as a means of preserving capital and generating income.
