Discount structure
Instead of paying a regular coupon, a bill can be purchased for less than the amount repaid at maturity.
The difference between purchase price and maturity value contributes to the investor’s return.
Maturity matters
Bills are short-term instruments, but exact tenors depend on the issuing government and auction programme.
Different maturities can offer different yields and reinvestment risk.
Auction and access
Governments typically issue bills through auctions or authorised distribution channels.
The process, minimum amounts, taxes and settlement rules are country-specific.
General information only. Investment products can lose value, and terms, fees and regulation can change.