Definition
A Treasury bill (T-bill) is a short-term U.S. government security that typically matures in one year or less and is sold at a discount, paying no periodic interest but paying face value at maturity.
Why It Matters
T-bills are widely used for cash management and are a reference point for short-term risk-free rates.
Example
An investor buys a $1,000 T-bill for $980 and receives $1,000 at maturity.