T-bill
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Treasury bill |
|---|---|
| Categories | Business & Finance |
T-bill stands for Treasury bill, a bond & Fixed-Income abbreviation.
Short-term US government debt security maturing in one year or less, issued at a discount to face value and redeemed at par, with the difference serving as interest. T-bills are considered the safest and most liquid short-term asset.
Example: She moved her emergency fund into 13-week T-bills yielding slightly more than her savings account.
Usage notes
The Treasury auctions bills weekly in maturities from 4 to 52 weeks, plus occasional cash management bills. Interest is exempt from state and local income taxes. Individuals can buy them through TreasuryDirect or a broker. The 3-month bill yield is often used as the "risk-free rate" in finance.
Related abbreviations
More bond & Fixed-Income abbreviations
- OAS – Option-adjusted spread
- OAT – Obligation assimilable du Trésor (French Treasury bond)
- OIS – Overnight index swap
- SOFR – Secured Overnight Financing Rate
- SONIA – Sterling Overnight Index Average
- STRIPS – Separate Trading of Registered Interest and Principal of Securities
- T-bond – Treasury bond
- T-note – Treasury note
- TIPS – Treasury Inflation-Protected Securities
- TRS – Total return swap
- UST – United States Treasury securities
- WAL – Weighted average life