Cash Management Bill - CMB


DEFINITION of 'Cash Management Bill - CMB'

A short-term security sold by the U.S. Department of the Treasury. The maturity on a CMB can range from a few days to six months. The money raised through these issues is used by the Treasury to meet any temporary shortfalls.

BREAKING DOWN 'Cash Management Bill - CMB'

The cash management bill is the most flexible instrument of the U.S. Treasury because it can be issued when needed, allowing the Treasury to have lower cash balances and issue fewer long-term notes. CMBs tend to pay higher yields than bills with fixed maturities, but their shorter maturities lead to lower overall interest expense.

  1. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  2. Interest Expense

    The cost incurred by an entity for borrowed funds. Interest expense ...
  3. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  4. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
  5. Treasury Note

    A marketable U.S. government debt security with a fixed interest ...
  6. Yield

    The income return on an investment. This refers to the interest ...
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