What is a Treasury bill?
A Treasury bill is a short-term government debt security. In Türkiye, the term refers to government paper with less than a year to maturity.
Issuance and return
1. Discount structure A bill can be sold below face value and redeemed at face value. A 95 purchase and 100 redemption yield a 5-unit difference before costs. 2. Maturity Short maturity may reduce, but not remove, sensitivity to interest-rate changes. 3. Government funding The treasury issues bills to finance public obligations. Buying a bill differs from paying taxes. 4. Secondary market Early sale value moves with yields and liquidity; face value at maturity is not an early-sale guarantee.
Risk and comparison
5. Costs and tax Net returns depend on charges and current tax treatment. Verify current rules rather than applying old rates. 6. Compared with bonds In Türkiye, Treasury bills are shorter-term than government bonds. Always check the individual security’s terms. 7. Annualizing return A 5-unit gain on a 95-unit cost is a holding-period return; a six-month investment requires an appropriate annualized comparison and costs.