T bills have some pre set maturity durations. I’m looking to see how those values were derived.How could we explain having the following maturities:
4 weeks
8 weeks
13 weeks
26 weeks
52 weeks
Thanks for helping with this
1 Like
Hi @Keen_gold_koi - are you asking why the Treasury issues T-bills with these specific maturities? If so, US government securities are issued for one purpose - to keep the government running. The US deficit spends (spends more than we bring in via taxes), and every Treasury security is issued to pay for our expenditures. T-bills fund short term monetary needs - the more short term expenses, the more T-bills issued.
Does this answer your question?
1 Like