Treasury Bills (T-Bills)

Treasury Bills (T-Bills) are short-term government debt instruments issued to finance public spending. They mature in one year or less and are sold at a discount to their face value. Investors earn interest based on the difference between purchase and maturity price. T-Bills are considered low-risk investments because they are backed by the U.S. government. They are mainly used by institutional investors, but individuals can also invest through brokers. T-Bills help manage cash flow by providing a stable, liquid investment option. They are crucial for government funding and economic stability.