| Treasury Bills |
| Product Definition |
Treasury Bills (Tbills) are direct and unconditional obligations of the national government. They are issued by the Bureau of Treasury (BTr). They carry a maturity of one year or less and can be traded in the secondary market before maturity.
Treasury Bills are considered one of the primest investment instruments in the market. They are safe, liquid and offer attractive returns to investors.
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Features:
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| Issuer | : National government |
| Term | : 91, 182, 364 days |
| Tax feature | : Interest income subject to 20% final withholding tax |
| Type of income | : Tax paid income |
| Interest computation | : True discount formula |
| Manner of purchase | : Auction or through secondary market |
Treasury Bills do not bear interest. They are issued and sold at a discount from face value and are redeemed at maturity for the full face value of the instrument.
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