Investing in US Treasury Bills: What Investors Need to Know In recent months, the US Federal Reserve has raised interest rates, making Treasury bills, or T-bills, more attractive than ever. T-bills are considered nearly risk-free investments, and some are paying 5% interest. But what do investors need to know before investing in T-bills? In this article, we’ll go over the basics of T-bills, the pros and cons of investing in them, and how to get the best returns on your T-bill investments.
What are Treasury Bills? Treasury bills are short-term debt instruments issued by the US government. They generally have a maturity of less than one year, and are backed by the “full faith and credit” of the US government. T-bills are considered nearly risk-free investments, since they are backed by the US government. As such, they are often the preferred choice of investors who are looking for a safe and secure investment.
Pros and Cons of Investing in Treasury Bills The main benefit of investing in T-bills is that they are considered nearly risk-free, since they are backed by the US government. As such, they can provide investors with a steady stream of income, as well as protection against inflation.