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Investing in T-bills (Part 1)

I find an advantage to investing in Treasury Bills, but I am still trying to wrap my brain around how big a benefit this is, to what extent it may be utilized, and/or how much of it is real or just perceived.

Here are some basics courtesy of Investopedia:

     > A Treasury bill [T-bill]… is a short-term U.S. government debt obligation
     > backed by the Treasury Department with a maturity of one year or less.
     > T-bills are usually sold in denominations of $1,000… These securities are
     > widely regarded as low-risk and secure investments.
     >
     > The U.S. government issues T-bills to fund various public projects, such
     > as the construction of schools and highways. When an investor purchases
     > a T-bill, the U.S. government effectively writes an IOU to the investor.
     > Thus, T-bills are considered a safe and conservative investment since the
     > U.S. government backs them.
     >
     > T-bills are generally held until the maturity date. However, some holders
     > may wish to cash out before maturity and realize the short-term interest
     > gains by reselling the investment in the secondary market.
     >
     > T-bills can have maturities of just a few days, but the maturities listed by
     > the Treasury are are four, eight, 13, 17, 26, and 52 weeks.
     >
     > T-bills are issued at a discount from the par value (also known as the face
     > value) of the bill, meaning the purchase price is less than the face value of
     > the bill. So, for example, a $1,000 bill might cost the investor $950.
     >
     > When the bill matures, the investor is paid the face value—par value—of
     > the bill they bought. If the face value amount exceeds the purchase price,
     > the difference is the interest earned for the investor.
     >
     > T-bills do not pay regular interest payments as with a coupon bond, but a
     > T-bill does include interest, reflected in the amount it pays when it matures.
     >
     > The interest income from T-bills is exempt from state and local income
     > taxes. However, the interest income is subject to federal income tax.
     >
     > New issues of T-bills can be purchased at auctions held by the
     > government on the TreasuryDirect site. These are priced through a
     > bidding process, with bidders ranging from individual investors to
     > hedge funds, banks, and primary dealers. These purchasers may then
     > sell the bills to other customers in the secondary market…
     >
     > You can also buy Treasury bills through a bank or a licensed broker
     > [i.e. secondary market]. Once completed, the purchase of the T-bill
     > serves as a statement from the government that says you are owed
     > the money you invested, according to the terms of the bid.

I will get more into the details of investing with T-bills next time.