Treasury Bills
a.k.a. T-bills, Bills
Short-term US government debt that matures in a year or less and is sold at a discount instead of paying…
In plain English
Short-term US government debt that matures in a year or less and is sold at a discount instead of paying interest.
Treasury bills (T-bills) are the US government's shortest IOUs, lasting from a few weeks up to a year. They pay no regular interest. Instead, you buy them below face value and get the full amount back at maturity; the difference is your return.
They are about as close to risk-free cash as it gets in dollars, so their yield is often used as the "risk-free rate" in finance. Money market funds hold them by the truckload.
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