Demonstration environment. Simulated balances and trades. No real money or securities.
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Foundations

How bills are issued

The path from a public announcement, through auction, to issue and later repayment.

New US bills reach the market through a regular cycle. The Treasury announces what it will sell, takes bids at auction, publishes the results, and issues the bills on a set date. Each bill is identified by a CUSIP.

AnnouncementTerm, amount and dates publishedAuctionBids close and a rate is setResultsHigh rate, price and bid-to-coverIssueBills delivered and paid forMaturityTreasury pays face value
The US cycle from announcement to repayment.

The cycle

  1. Announcement: the term, offering amount and key dates are published ahead of the auction.
  2. Auction: bids are collected until the closing times, and a single clearing rate is set.
  3. Results: the high rate, investment rate, price and bid-to-cover are published shortly afterward.
  4. Issue: the bills are delivered and paid for on the issue date.
  5. Maturity: the Treasury pays face value on the maturity date.

A CUSIP can be reused. A 13-week bill issued today can share a CUSIP and maturity date with a 26-week bill issued thirteen weeks ago, because they are the same obligation once both are outstanding.

Key points

  • Bills are announced, auctioned, issued and repaid on a published cycle.
  • Results are public shortly after the auction closes.
  • A CUSIP identifies the obligation, and can be shared across original terms.

General information only. It is not investment, legal or tax advice. Details vary by market and can change, so check the issuer’s current rules.