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A short-term U.S. government bond that matures in one year or less.
Why It Matters
Treasury bills (T-bills) are the shortest U.S. government debt — maturing in a year or less. They're considered among the safest places to park money, which is why their yield is often used as a stand-in for the "risk-free rate" that other investments are compared against.
Key Points
- Maturities range from a few weeks up to one year
- Sold at a discount and repaid at face value, rather than paying a coupon
- Widely used as the short-term "risk-free" benchmark
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Treasury Bonds Explained
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Related Terms
Common Questions
A short-term U.S. government bond that matures in one year or less. Treasury bills (T-bills) are the shortest U.S.
Treasury bills (T-bills) are the shortest U.S. government debt — maturing in a year or less. They're considered among the safest places to park money, which is why their yield is often used as a stand-in for the "risk-free rate" that other investments are compared against.
Maturities range from a few weeks up to one year
Sold at a discount and repaid at face value, rather than paying a coupon
Widely used as the short-term "risk-free" benchmark