US TREASURY BILLS
Treasury Bills* are obligations of the U.S. Treasury that pay the investor a fixed sum at the bills' maturity date. They generally provide the lowest yield of any of the short-term money market instruments, but provide the investor the highest degree of security and liquidity.
Terms and Structures
- Maturity
One month, three months, and six months
- Issued
Offered at a regular auction schedule and on a continuing basis in the secondary market
- Form
Treasury Bills are purchased in book entry form and can be held in Wachovia's Institutional Trust Services Custody Department or delivered per instruction
- Quoted
On a discount yield basis
- Rate Structure
Yields are determined by current interest rates and vary with market conditions, maturities, and transaction size
- Interest
The return to the investor is the difference between the discounted purchase price and the face or par value of the bill
- Denominations
Available in minimum amounts of $10,000, with $1,000 increments thereafter
- Security
As a direct obligation of the U.S. Government, Treasury Bills are generally considered to be the most secure investment vehicle available, although the valuation before maturity will vary with general interest rate levels
- Tax Status
Interest from Treasury Bills is subject to federal income tax, but is exempt from state income tax
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