Treasury Bonds
Treasury Bills
Treasury Notes

Treasury Bill

Treasury bills (or T-bills) mature in six months or less. They are like zero coupon bonds in that they do not pay interest prior to maturity; instead they are sold at a discount of the par value to create a positive yield to maturity. Treasury bills are considered by many to be the most risk free investment. Treasury Bills are commonly issued with maturity dates of 91 days (~3 months), and 182 days (~6 months). Treasury Bills are sold weekly at an auction held on Mondays. Banks and financial institutions, especially primary dealers, are the largest purchasers of T-Bills. They are quoted for purchase and sale in the secondary market on an annualized percentage yield to maturity, or 'basis'.