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Treasury Bills (T-Bills)

Definition of 'Treasury Bills (T-Bills)'

Treasury Bills (or T-Bills, as they are sometimes called) are short-term, money market securities issued by the U.S. Government and sold at a discount to the buyer with guaranteed return after a period of time. They do not pay interest in the sense that they do not accrue interest over time, but the interest it pays out is the difference between what the T-bill is sold for and its face value (sometimes called par amount).

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