commonly called bill or T-bill by money market people, a Treasury bill is a short-term (maturities up to a year), discounted government security sold through competitve bidding at weekly and monthly auctions in denominations from $10,000 to $1 million.

A Treasury bill is a short term (less than one year) security issued by the U.S. Government. These bonds are issued at a discount, and the holder receives the full face value at maturity. The difference between the amount paid and the amount received is treated as ordinary income.

U.S. Treasury Bills are U.S. Government debt issues with maturities of one year or less, and backed by the full faith and credit of the U.S. Government. Interest on U.S. Treasury Bills is included in their face value, which is received by the investor at maturity. Although the U.S. Government guarantees the timely payment of the face value of these securities, it does not protect against market fluctuations. As a result, loss of Principal is possible when these securities are sold prior to maturity. Treasury Bills are not FDIC insured.