QUICK DEFINITION
Treasury Bill is a short-term U.S. government security issued at maturities of one year or less.
WHY IT MATTERS
Why Treasury Bill matters in bond markets
Bills are central to money-market collateral, cash management and the transmission of changes in Treasury financing needs.
MARKET CONTEXT
How to think about it
Bond investors use treasury bill as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Treasury Bill important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Bills are central to money-market collateral, cash management and the transmission of changes in Treasury financing needs.