Treasury bills are issued through an electronic bill auction held by the government every week.
the auction of bills is open to the public, both institutional and individual investors; Participation requires 24 primary dealers - financial institutions and brokerage houses.
Participants are divided into competitive and non-competitive participants. Competitive bids determine the discount rate payable on each issue of Treasury bills. Non-competitive bids are guaranteed to receive their securities, but must accept the rate set by competitive bids.
The lowest discount rate corresponding to the offer of the debt being sold serves as the “winning” yield.
The Treasury Current Yield Curve graphically shows the current yield versus maturity of the most recently traded US Treasury securities and is the primary benchmark used in the pricing of fixed income securities.
Flattening of the yield curve is when short-term and long-term bonds do not undergo noticeable changes in rates. This makes long-term bonds less attractive to investors.
Hard call protection or absolute call protection is a condition of a callable bond, according to which the issuer cannot exercise the call and redeem the bond before a specified date, usually three to five years from the date of issue.
A harmless warrant is a provision that requires the holder of a bond to return the bond to the issuer if he buys another bond with similar terms from the same issuer.
The high yield bond spread, also known as the credit spread, is the difference between the yield on a high yield bond and a benchmark bond such as an investment grade or treasury bond.
Hospital Income Bonds are a type of municipal bond that finances the construction of new facilities or the modernization of existing hospitals and is backed by the income that hospitals earn in the normal course of business.
Housing Authority bonds or housing bonds are issued by state or local governments to finance the construction or renovation of affordable rental housing.
Housing bonds are debt securities, a type of municipal income bond issued by state or local governments to raise funds for affordable housing development projects.
Industrial Revenue Bonds (IRBs) are a type of municipal bond issued by a state or local government on behalf of a private company for a specific project.
Japanese government bonds (JGB) are bonds issued by the Japanese government that have become a key element in the country’s central bank’s efforts to boost inflation.