What it is
Treasury bills (also known as T-bills) are peso-denominated short-term debt securities that are issued by the government to raise money for various activities. In the Philippines, they are offered by the Department of Treasury.
They are fixed-income instruments, which means that the profit you’ll get from investing in them is already set. The tenor, or time before maturity, is less than 365 days.
Treasury bills are sold at a discount, which means you can get them for less than you’ll be repaid. Unlike bonds, you won’t receive interest at regular intervals.
What it means for you
Investing in Treasury bills means that you’ll be lending the government money, which it promises to pay you back in full by the maturity date. You can buy them from the initial offering through brokers licensed by the Securities and Exchange Commission (SEC).
There’s also a secondary market operated by the Philippine Dealing and Exchange Corporation (PDEX), in which you can buy and sell all sorts of fixed-income securities. These include Treasury bills and corporate bonds.
