What is Treasury Bill (T-Bill)?

A treasury bill (T-Bill) is a short-term financial instrument issued by the U.S. government. These fixed-income securities generally have a maturity period lasting from four weeks to a year. Due to their short duration, T-bills do not compensate investors via regular interest payments. Instead, they are sold at a discount to their face value at the point of purchase, and investors receive the full face value amount once the T-bill reaches maturity.