What is 3 Month Bill Auction

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Jan 10

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What is it?

• A 3-month bill auction is a regular event held by the U.S. Department of the Treasury in which it auctions off a certain amount of 3-month debt in the form of treasury bills/T Bills to the public.
• They are sold at a discount to face value, and the difference between the purchase price and the face value represents the interest earned.