T-Bill Law and Legal Definition

T-Bill is the abbreviation for Treasury bill, which is one kind of government security issued by the U. S. Treasury to obtain the funds used to finance the federal budget deficit. A Treasury bill has a maturity length of one year or less, with 90 days a common maturities. T-bills, together with short-term commercial paper issued by businesses, are traded in money markets. The interest rate on T-bills is one of the key indicators of short-run economic activity.