Treasury bills are an important financing tool in the money market, and a means for our government to raise short-term funds by issuing bonds, solve financial difficulties and make up the national deficit. When there is a deficit in the implementation of the annual budget of the central government, treasury bonds financing is a conventional means to make up for the deficit. Because the debtor of the national debt is the country, its repayment guarantee is the national fiscal revenue, and there is almost no risk of credit default, so it is the least risky credit tool in the financial market. The shortest term of China's national debt is one year, and it is issued to local governments, enterprises, social organizations and urban and rural residents. There are many kinds of national debt in western countries, which can be generally divided into four types: 3 months, 6 months, 9 months and 1 year.
There is a difference between national debt and national debt. National debt is the main form of national credit, a government bond issued by the central government to raise financial funds, and a debt certificate issued by the central government to investors that promises to pay interest and repay the principal within a certain period of time. It is a credit certificate for the government to borrow money from domestic individuals, groups and foreign investors by issuing bonds, which is mainly used to raise financial funds or make up for financial deficits.
Although treasury bills and treasury bonds are bonds issued by the government to raise funds, treasury bills are only a form of treasury bonds, which contain treasury bills, and their breadth and functions far exceed those of treasury bills.