Money Markets

Treasury Bill

Definition

What is Treasury Bill?

A short-term government debt instrument usually issued at a discount and repaid at face valueThe principal amount stated on a bond and usually repaid at maturity..

Example in practice

How This Looks in Practice

An investorA person or organisation that commits capital with the expectation of a financial return. buys a 364-day Treasury bill below par and receives face value at maturityThe date when a debt investment's principal is scheduled to be repaid..

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Related Terms

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Commercial Paper

Short-term unsecured debt issued by a company.

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A time deposit or tradable bank instrument that pays interest over a stated term.

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Bankers' Acceptance

A time draft guaranteed by a bank, commonly used to finance trade.

Fixed Income Strategies

Maturity Ladder

A portfolio of debt instruments with maturities spread across regular intervals.

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