- an obligation of the U.S. government represented by promissory notes in denominations ranging from $1000 to $1,000,000, with a maturity of about 90 days but bearing no interest, and sold periodically at a discount on the market.Also, treasury bill.[1790-1800]
* * *Short-term U.S. government security with maturities ranging from one month to 26 weeks.Treasury bills are usually sold at auction on a discount basis with a yield equal to the difference between the purchase price and the maturity value. Because they are highly liquid (money not being tied up in them for long periods of time), their yield rate is normally lower than that of longer-term securities. Their prices do not usually fluctuate as much as those of other government securities but may be influenced by the purchase or sale of large quantities of bills by the central bank. First used extensively during World War I, treasury bills were initially regarded as an emergency source of revenue, but their flexibility and relatively low interest led to their adoption as a permanent element in the national debt. From 1970 to 1998 the minimum order for treasury bills was $10,000, after which it was reduced to $1,000. In 2001 the U.S. Treasury stopped offering treasury bills with maturities of 52 weeks.
* * *▪ financeshort-term U.S. government security with maturity ranging from one month to 26 weeks. Treasury bills are usually sold at auction on a discount basis with a yield equal to the difference between the purchase price and the maturity value. In contrast to longer-term government securities, such as treasury notes (with maturity ranging between 1 and 10 years), treasury bills are much more liquid investments (i.e., cash for alternative investments is tied up for shorter periods of time). Because of this high liquidity, the yield rate on treasury bills is normally lower than on longer-term securities. Prices of treasury bills do not usually fluctuate as much as those of other government securities but may be influenced by the purchase or sale of large quantities of bills by the central bank. From 1970 to 1998 the minimum order for treasury bills was $10,000, after which it was reduced to $1,000. In 2001 the U.S. Treasury stopped offering treasury bills with maturities of 52 weeks.First used extensively during World War I and initially regarded as an emergency source of revenue, bills and other short-term debt instruments have become a permanent element in the public debt of several countries because of their relatively low-interest cost and greater flexibility. Treasury bills are ordinarily held as secondary reserves by commercial banks and by other investors as a means of temporarily employing excess funds.
* * *
Look at other dictionaries:
treasury bill — see bill 7 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. treasury bill n. A pr … Law dictionary
Treasury bill — also T bill informal an American government ↑bond. Treasury bills are sold to raise money for the government and usually bought by large financial institutions around the world … Dictionary of contemporary English
treasury bill — ☆ treasury bill n. a short term obligation of the U.S. Treasury, maturing in one year or less, bearing no interest and sold periodically on the open market on a discount basis … English World dictionary
treasury bill — treasury ,bill noun count BUSINESS a type of investment consisting of a document that is sold by a government, especially the U.S. government, at a particular price, then bought back by the government later for a higher price … Usage of the words and phrases in modern English
Treasury bill — A Treasury bill is a short term U.S. government obligation with an original maturity of one year or less. Unlike a bond or note, a bill does not pay a semi annual, fixed rate coupon. A bill is typically issued at a price below its par value and… … Financial and business terms
Treasury bill — noun a short term obligation that is not interest bearing (it is purchased at a discount); can be traded on a discount basis for 91 days • Syn: ↑T bill • Hypernyms: ↑Treasury, ↑Treasury obligations * * * ˈtreasury bill 7 [treasury bill] … Useful english dictionary
Treasury Bill — Un T Bill ou Treasury bill (billet du trésor) est une obligation à court terme émise par le gouvernement américain, et dont la maturité est d’un an ou moins. Ils équivalent aux BTF de l Etat français. Sur le même modèle que les obligations zéro… … Wikipédia en Français
Treasury bill — A bill of exchange issued by the Bank of England on the authority of the UK government that is repayable in three months. They bear no interest, the yield being the difference between the purchase price and the redemption value. The US Treasury… … Big dictionary of business and management
treasury bill — Short term obligations of the federal government. Treasury bills are for specified terms of three, six and twelve months. An obligation of the U.S. Treasury with a maturity date less than one year from the date of issue and bearing no interest… … Black's law dictionary
treasury bill — T bill A *short term, U.S. federal government debt instrument. T bills are considered to be virtually *risk free, and they carry low *yields. See also *Treasury bond … Auditor's dictionary