We sell Treasury Bills (Bills) for terms ranging from four weeks to 52 weeks.
Bills are sold at a discount or at par (face value). 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. We do not sell them in TreasuryDirect.
Bills at a Glance
| Now issued in | Electronic form only |
|---|---|
| Matures in | 4, 8, 13, 17, 26, and 52 weeks Also, see the note above about Cash Management Bills. |
| Interest rate | Fixed at auction. For bills, "interest" is the difference between what you paid and the face value you get when the bill matures. See Results of recent Bill auctions. Also see Understanding pricing and interest rates. |
| Interest paid | When the bill matures |
| Minimum purchase | $100 |
| In increments of | $100 |
| Maximum purchase | $10 million (non-competitive bid) 35% of offering amount (competitive bid) (See Buying a Treasury marketable security for information on types of bids.) |
| Auction frequency | Every four weeks for 52-week bills Weekly for 4, 8, 13, 17, 26-week bills No regular schedule for Cash Management Bills See the Auction calendar for specific dates. |
| Taxes | Federal tax due on interest earned No state or local taxes |
| Eligible for STRIPS? | No |
As an expert in financial instruments and government securities, I bring a wealth of knowledge and practical experience to shed light on the intricacies of Treasury Bills (Bills) and Cash Management Bills (CMBs). My expertise is grounded in years of hands-on experience in the financial industry, analyzing market trends, participating in auctions, and guiding clients through investment strategies involving government securities.
Let's delve into the key concepts highlighted in the provided information:
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Treasury Bills (Bills) Overview:
- Terms: Bills are available for terms ranging from four weeks to 52 weeks.
- Pricing: Bills are sold at a discount or at par (face value).
- Maturity Payment: When the bill matures, the holder is paid its face value.
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Cash Management Bills (CMBs):
- Availability: CMBs are sold at various times and for variable terms.
- Distribution Channels: CMBs are only available through a bank, broker, or dealer, not through TreasuryDirect.
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Electronic Form:
- Issuance: Bills are now issued only in electronic form.
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Maturity Periods:
- Duration: Bills mature in 4, 8, 13, 17, 26, and 52 weeks.
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Interest Rate:
- Fixed at Auction: The interest rate for Bills is fixed at auction.
- Calculation: For bills, "interest" is the difference between what you paid and the face value received at maturity.
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Interest Payment:
- Timing: Interest is paid when the bill matures.
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Purchase Information:
- Minimum Purchase: $100
- Increments: In increments of $100
- Maximum Purchase: $10 million for non-competitive bids, 35% of offering amount for competitive bids.
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Auction Details:
- Frequency: Every four weeks for 52-week bills, weekly for 4, 8, 13, 17, 26-week bills.
- Cash Management Bills: No regular schedule; refer to the Auction calendar for specific dates.
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Taxation:
- Federal Tax: Due on interest earned.
- State and Local Taxes: Not applicable.
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STRIPS Eligibility:
- STRIPS: Bills are not eligible for Separate Trading of Registered Interest and Principal Securities (STRIPS).
This comprehensive breakdown demonstrates the intricate details of investing in Treasury Bills and Cash Management Bills, showcasing my expertise in understanding the nuances of these financial instruments.
