Treasury Bills

Short-term obligations of a Government issued for periods of one year or less. Treasury bills do not carry a rate of interest, but are issued at a discount on the par value. Treasury bills are repaid at par on the due date.

Related Terms

Discount Rate

The discount rate is the interest rate charged by a central bank, such as the Federal Reserve, to commercial banks for borrowing funds on a short-term basis.

Treasuries

U.S. Treasuries are debt securities issued by the United States Department of the Treasury to finance government spending and obligations

Discount Window

The discount window is a tool that the central bank, like the Federal Reserve, uses to provide liquidity to the banking system.

Reserve Management Operation Purchases

Reserve Management Operation (RMO) Purchases are a type of central bank activity, where the central bank buys securities, in the open market to ensure that the banking system has an ample supply of reserves.

Carry Trade

Carry trade is a widely-used trading strategy that involves borrowing in a low-interest-rate currency and investing in a high-interest-rate currency to profit from the interest rate differentials. This strategy is particularly popular in the foreign exchange market, where traders seek to capitalize on the differences between countries’ interest rates. Let’s explore the concept of carry […]