The term treasury bills secondary market refers to the place where the actual transactions occur. In this particular market, treasury bills are traded based on a certain percentage yield. This yield is obtained after a treasury bill matures.
The Treasury Direct enables buyers of these types of securities to purchase treasury bills through the Internet.
They can have the funds taken out and subsequently deposited directly into the bank accounts of respective buyers.
Treasury Bills in USA
In the United States, treasury bills are issued by the Treasury Department through the Public Department Bureau. The mechanism of these bills is utilized by the United States government during the time it conducts open market operations.
The maximum maturity period for treasury bills is one year, however, bills may be issued for a one, three, or six month period. The price of a bill ranges from one thousand to five million US dollars.
Treasury Bills Transaction Details
Treasury bills are sold through competitive auctions that take place every Wednesday. Bids are normally placed at the Treasury Direct and the winners receive their bills on the Fridays of that week.
The deadline for placing bids is 11:30 on Mondays and matured bills can be exchanged for money on Thursdays.
Various monetary companies are the biggest purchasers of treasury bills in the United States.
Last Updated on : 22 July 2016