Definition of Treasury bills

Treasury bills

Debt obligations of the U.S. treasury that have maturities of one year or less. Maturities for Tbills
are usually 91 days, 182 days, or 52 weeks.

Bank discount basis

A convention used for quoting bids and offers for treasury bills in terms of annualized
yield , based on a 360-day year.

Cash-equivalent items

Temporary investments of currently excess cash in short-term, high-quality
investment media such as treasury bills and Banker's Acceptances.

Discount securities

Non-interest-bearing money market instruments that are issued at a discount and
redeemed at maturity for full face value, e.g. U.S. treasury bills.

Money market

Money markets are for borrowing and lending money for three years or less. The securities in
a money market can be U.S.government bonds, treasury bills and commercial paper from banks and
companies.

Stock replacement strategy

A strategy for enhancing a portfolio's return, employed when the futures
contract is expensive based on its theoretical price, involving a swap between the futures, treasury bills
portfolio and a stock portfolio.

Wi wi

treasury bills trade on a wi basis between the day they are auctioned and the day settlement is made.
bills traded before they are auctioned are said to be traded wi wi.

Marketable security

An easily traded investment, such as treasury bills, which is
recorded as a current asset, since it is easily convertible into cash.

market risk premium

Risk premium of market portfolio. Difference between market return and return on risk-free treasury bills.

Risk-Free Rate

The rate of return obtainable on government of Canada treasury bills.

money market fund

A type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates.

qualified investments (Canada)

Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
Canadian dollar savings accounts, guaranteed investment certificates, term deposits
shares of Canadian and foreign companies listed on a prescribed stock exchange
shares of some over-the-counter U.S. and Canadian companies
shares of some small businesses
certain types of bonds and money-market investments such as treasury bills, Canada Savings Bonds, Government of Canada bonds, provincial government bonds, Crown Corporation bonds, bonds issued by Canadian corporations listed on a prescribed stock exchange, and certain strip bonds
certain types of mortgages, including your own
certain covered call options, warrants and rights
certain mutual funds

Tax anticipation bills (TABs)

Special bills that the treasury occasionally issues that mature on corporate
quarterly income tax dates and can be used at face value by corporations to pay their tax liabilities.

Treasury bonds

Debt obligations of the U.S. treasury that have maturities of 10 years or more.

Treasury notes

Debt obligations of the U.S. treasury that have maturities of more than 2 years but less than 10 years.

Treasury securities

Securities issued by the U.S. Department of the treasury.

Treasury stock

Common stock that has been repurchased by the company and held in the company's treasury.

U.S. Treasury bill

U.S. government debt with a maturity of less than a year.

U.S. Treasury bond

U.S. government debt with a maturity of more than 10 years.

U.S. Treasury note

U.S. government debt with a maturity of one to 10 years.

Treasury stock

Shares that were sold to the public but have since been repurchased by the company in the open market. treasury stock is deducted from the equity section, and is therefore a contraequity account.

Treasury bill

Short-term U.S. government security issued at a discount from
the face value and paying the face value at maturity.

Treasury bond

Long-term debt obligation of the U.S. government that makes
coupon payments semi-annually and is sold at or near par value in $1000
denominations or higher. Face value is paid at maturity.

treasury stock

Stock that has been repurchased by the company and held in its treasury.

Treasury Bill

A short-term (less than one year) government discount bond.

Treasury Bill

Short-term government security.

Cash management bill

Very short maturity bills that the treasury occasionally sells because its cash
balances are down and it needs money for a few days.

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