How often is a new Treasury bill auction conducted?

How often is a new Treasury bill auction conducted?

• A. Every day
• B. Weekly
• C. Monthly
• D. Quarterly

Answer: (B)

A new Treasury bill auction is typically conducted on a weekly basis. The U.S. Department of the Treasury issues T-bills with various maturities, and these auctions are organized to allow investors to purchase T-bills directly. Given the financial market's need for liquidity and the government's ability to manage its short-term financing needs, a weekly auction schedule for Treasury bills provides a predictable and consistent opportunity for both institutional and individual investors to acquire these securities. This frequency allows the Treasury to effectively raise funds while ensuring that the market remains active, helping to set competitive interest rates based on demand. By conducting these auctions weekly, the government can better accommodate different investors' cash flow needs and market conditions.

A new Treasury bill auction is typically conducted on a weekly basis. The U.S. Department of the Treasury issues T-bills with various maturities, and these auctions are organized to allow investors to purchase T-bills directly. Given the financial market's need for liquidity and the government's ability to manage its short-term financing needs, a weekly auction schedule for Treasury bills provides a predictable and consistent opportunity for both institutional and individual investors to acquire these securities.

This frequency allows the Treasury to effectively raise funds while ensuring that the market remains active, helping to set competitive interest rates based on demand. By conducting these auctions weekly, the government can better accommodate different investors' cash flow needs and market conditions.