A Treasury Bill (T-Bill) is a short-term debt obligation issued by the U.S. government. Treasury Bills are issued with maturities ranging from 4 to 52 weeks, and are backed by the full faith and credit of the U.S. government.
Unlike a Treasury Bond and Treasury Note, the T-bills do not pay periodic interest. T-Bills are sold at a discount from face value, and the holder receives the face value when it matures. The difference between the purchase price and face value is the interest income.
Investors can purchase and hold T-Bills until maturity or sell them to another party. The Treasury Direct website provides more information and instructions on how to purchase T-Bills.