- What are the maturity terms for Treasury bills?
- What kind of interest payments will I receive if I own a Treasury bill?
- What if an auction results in a price that's not exactly to the penny?
- Can I buy any Treasury bill directly from the Treasury?
- How do I know when bills will be auctioned?
- Do you still issue bills in paper form?
- How can I place a competitive bid for a bill?
What are the maturity terms for Treasury bills?
Among bills auctioned on a regular schedule, there are six terms: 4 weeks, 8 weeks, 13 weeks, 17 weeks, 26 weeks, and 52 weeks. Another bill, the cash management bill, isn't auctioned on a regular schedule. It is issued in variable terms.
What kind of interest payments will I receive if I own a Treasury bill?
The only interest payment to you occurs when your bill matures. At that time, you are paid the par amount (also called face value) of the bill. (Bills are typically sold at a discount from the par amount, and the difference between the purchase price and the par amount is your interest.) Treasury Direct customers who reinvest a bill may receive a refund (or discount) when the bill is issued. It is possible for a bill auction to result in a price equal to par, which means that Treasury will issue and redeem the securities at par value.
What if an auction results in a price that's not exactly to the penny?
Treasury calculates auction results to the sixth decimal place. In determining the particular dollar amount an investor will pay, Treasury rounds to the nearest penny using conventional mathematical rounding methods.
Can I buy any Treasury bill directly from the Treasury?
The 4-week, 8-week, 13-week, 17 week, 26-week, and 52-week bills are available in TreasuryDirect. Cash management bills aren't.
How do I know when bills will be auctioned?
We auction 4-week, 8-week, 13-week, 17-week, and 26-week bills every week. Typically, we auction 13-week and 26-week bills on Monday, the 17-week on Wednesday, and 4-week and 8-week bills on Thursday. We auction the 52-week bill every four weeks. Cash management bills aren't auctioned according to a schedule.
For specific dates, see our Tentative Auction Schedule, which shows auction dates months in advance, or "Upcoming Auctions," which shows auctions that we have officially scheduled. (Auctions are officially scheduled only days before they are conducted.)
Also, you can sign up for e-mail notification of auctions.
Do you still issue bills in paper form?
No. All Treasury bills are now issued electronically.
How can I place a competitive bid for a bill?
By using a bank, broker, or dealer.
FAQs
For a risk-averse investor, T-bills offer steady, albeit typically low, returns and are useful for preserving capital and maintaining liquidity. However, their low-risk nature also means they generally provide lower yields compared to other investments, and potentially will not keep pace with inflation over time.
What is the best way to buy Treasury bills? ›
You can buy them from the government directly, and many buy them through a brokerage, retirement or bank account. Treasury owners pay federal taxes on the investment interest earned but no state or local taxes. Investors may turn to Treasurys during periods of volatility or uncertainty due to their safety.
What happens when a treasury bill matures on TreasuryDirect? ›
When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures. Note about Cash Management Bills: We also sell Cash Management Bills (CMBs) at various times and for variable terms. Cash Management Bills are only available through a bank, broker, or dealer.
Is there a problem with the TreasuryDirect website today? ›
No, we are not detecting any problems with TreasuryDirect right now. The last outage detected for TreasuryDirect was on Saturday, July 20, 2024 with a duration of about 31 minutes.
What is a better investment than Treasury bills? ›
Compared with Treasury notes and bills, Treasury bonds usually pay the highest interest rates because investors want more money to put aside for the longer term. For the same reason, their prices, when issued, go up and down more than the others.
Do you pay capital gains on Treasury bills? ›
However, income earned from Treasury bills is not subject to state tax or local income taxes. Are Treasury bills taxed as capital gains? Normally no. However, if you buy a T-bill in the secondary market and then achieve a profit, you may be liable for capital gains depending on your exact purchase price.
What day of the week should I buy Treasury bills? ›
Treasury Bills
Except for holidays or special circ*mstances, the offering is announced on Tuesday, the bills are auctioned on Thursday, and they are issued on the following Tuesday.
Can Treasury bills lose value if held to maturity? ›
They are considered risk-free, as the government can always print the money to pay back the debt. And given that they have only a short time to maturity, they have very little sensitivity to interest rate moves. If interest rates rise, the bonds don't fall much in value.
What is the 45 day rule for TreasuryDirect? ›
TreasuryDirect requires Treasury marketable securities be held for 45 days following original issue before they may be transferred. 4-Week Bills bought at original issue in TreasuryDirect may not be transferred at all because the term of the security is less than 45 days.
Why is my Treasury bill losing money? ›
Economic growth or decline, interest rates and inflation can all affect Treasury bill rates. Here's how it works: Demand for T-bills often drops during inflationary periods if the T-bill rates offered don't keep pace with inflation.
Securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature. This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities' maturity.
How do I talk to someone at TreasuryDirect? ›
TreasuryDirect customers:
Our call center hours are Monday-Friday, 8am-5pm ET. You may reach us at 844-284-2676. If you open an account and are asked to send us an Account Authorization form, you must submit the form before you can access your account. Don't forget to have your signature certified.
Why don't people invest in the treasury bill? ›
The federal funds rate — the lending rate between banks — can also affect T-bill prices. When lending interest rates are high, investors tend to look toward more profitable investment options, such as stocks and funds, and away from Treasury bills.
What are the risks of investing in Treasuries? ›
Treasury bonds are widely considered a risk-free investment because the U.S. government has never defaulted on its debt. However, investors should understand that even U.S. government bonds have interest rate risk.
How much does a $1000 T-bill cost? ›
Treasury bills, or bills, are typically issued at a discount from the par amount (also called face value). For example, if you buy a $1,000 bill at a price per $100 of $99.986111, then you would pay $999.86 ($1,000 x . 99986111 = $999.86111). * When the bill matures, you would be paid its face value, $1,000.
How much will I make on a 4 week treasury bill? ›
4 Week Treasury Bill Rate is at 4.94%, compared to 4.97% the previous market day and 5.28% last year. This is higher than the long term average of 1.47%. The 4 Week Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 4 weeks.
