What is 3 Month Bill Auction

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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.
• The 3 month T-bill auction is held on a regular schedule, with auctions held every week and the bills issued on the following Thursday.
• The bills are auctioned off to the highest bidder, and the interest rate is determined by the auction process.
• The 3-month T-bill is a very popular investment among investors because it is considered to be a low-risk, highly liquid investment with a short maturity.

Who Reports It?

The U.S. Department of the Treasury releases the information to the public through a press release or on the website.

How it is Generated?

• The U.S. Department of the Treasury conducts auctions of 3 month T-bills and other government securities.
• After the auction has been held, the Treasury will announce the results, including the interest rate that was determined by the auction…