Comprehensive Guide to Treasury Bills: Unveiling the Basics of T-Bills

Treasury bills, or T-Bills, are short-term securities issued by the U.S. Treasury with maturity periods less than one year. These are considered one of the safest investments due to their backing by the full faith and credit of the federal government.

T-Bills are sold at a discount to their face value, and the difference between the purchase price and the amount received at maturity is the interest earned by the investor. For instance, in September 2025, the current yield for a 6-month T-Bill was approximately 3.88%.

T-Bills have various maturity periods, ranging from a few days to 52 weeks. A 3-month T-Bill is a short-term government security with a maturity period of three months, while Treasury notes have maturity periods of two to ten years and pay interest every six months. Treasury bonds, on the other hand, have the longest maturity periods of all Treasury securities, ranging from 10 to 30 years, and like notes, they also pay interest semiannually.

While T-Bills are not included in the cryptocurrency market, some investors include both T-Bills and cryptocurrencies like Bitcoin or Dogecoin in their investment portfolios to achieve a balanced investment strategy. However, it's important to note that the cryptocurrency market suffers from high volatility and occasional arbitrary movements, and any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

Reinvestment risk is another danger, as when T-Bills mature, the investor may have to reinvest the funds in a new T-Bill with a potentially lower yield. Additionally, inflation poses a primary risk to T-Bill investors, as the purchasing power of the returns may be eroded if the inflation rate is higher than the yield of the T-Bill.

Some stablecoins are backed by reserves of safe assets, which sometimes include Treasury bills, adding a layer of security and stability to these digital assets. However, T-Bills are not a part of the cryptocurrency market.

T-Bills are impacted by the monetary policy of the U.S. Federal Reserve and the overall state of the economy. As such, potential investors should keep an eye on these factors when considering adding T-Bills to their investment portfolio.

It's essential to remember that the contents of this article are not financial or investing advice. The information provided in this article is the author's opinion only and should not be considered as offering trading or investing recommendations. Always consult with a financial advisor before making investment decisions.

Investors can buy T-Bills directly from the U.S. Treasury through the TreasuryDirect website or in the secondary market through banks or brokers. With their short-term maturity periods, T-Bills offer a low-risk, stable investment option for those seeking to grow their savings while minimising risk.