Cash Management Bills — TreasuryDirect (2024)

At a Glance

Treasury issues short-term cash management bills periodically to manage short-term financing needs.

Method of Purchase

Cash management bills can be purchased by individuals, fiduciaries, and corporate investors through a broker, dealer, or financial institution during the auction process.

Bidding

Bidding is either noncompetitive or competitive.

When you bid noncompetitively, you agree to accept the discount rate set at auction. You will receive the full amount of your bid up to $10 million. You can bid noncompetitively through a broker, dealer, or financial institution.

When you bid competitively, you specify the minimum discount rate you will accept. Depending on the discount rate set at auction, your competitive bid will be:

• Accepted in full if your bid is less than the auction’s rate;
• Accepted partially if your bid is equal to the auction’s rate; or
• Not awarded if your bid is higher than the auction’s rate.

Competitive bids are placed through a broker, dealer, or financial institution.

Auction Frequency

Cash management bills are not auctioned according to a schedule.

Maturity Terms

The maturity on a cash management bill ranges from a few days up to one year.

Tax Considerations

Interest on cash management bills is exempt from state and local taxes but is subject to federal tax.

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