A U.S. Treasury bill has a maturity of one year or less when it is first issued.
Treasury bills, usually called T-bills, are short-term debt securities issued by the United States Department of the Treasury. Unlike conventional coupon bonds, they are generally sold at a discount to face value and pay the face value at maturity. The difference represents the investor’s return.
Common bill maturities include four, eight, thirteen, seventeen, twenty-six, and fifty-two weeks, although auction offerings can change. Because they are backed by the U.S. government, T-bills are widely treated as low-credit-risk instruments, though their market prices and real purchasing power can still be affected by interest rates and inflation.
Treasury notes generally mature from more than one year to ten years, while Treasury bonds generally mature in more than ten years. That maturity distinction is why a two-year Treasury security is a note rather than a bill.