# USTB Yield

### US Treasury Bills Yield

U.S. Treasury bills, commonly known as T-bills, are short-term government securities issued by the U.S. Department of the Treasury.

The yield from T-bills comes from the difference between the purchase price and the face value (also known as the par value) of the bill. T-bills are typically sold at a discount to their face value; investors receive the face value upon maturity. The yield, therefore, is the gain realized over the investment period, calculated as a percentage of the initial investment.

One of the key features of T-bills is their predictable yield. Since they are issued with fixed terms (commonly 4, 8, 13, 26, or 52 weeks), the return can be calculated with a high degree of accuracy at the time of purchase. This predictability, combined with the safety of the investment, makes T-bills a favored choice for investors seeking a low-risk, short-term investment option.

T-bill liquidity – the ease with which they can be bought and sold in the financial markets – adds to their appeal. This liquidity, along with the U.S. government's creditworthiness, contributes to the general perception of T-bills as a virtually risk-free asset.

### USTB Yield

USTB holders earn the aforementioned yield accrued by the T-bills that ultimately back it.

[Mountain Protocol ](https://docs.mountainprotocol.com/)manages the USDM reserves, USDM backs USTB 1:1. As USDM accrues yield from it's T-bill backing, that yield is passed along to USDM holders as a daily rebase. USTB takes this increase to it's USDM backing and sends it to USTB holders as a daily rebase.

<figure><img src="/files/RdxJNQPVOjbS53pZ1Efy" alt=""><figcaption></figcaption></figure>

[Read more](/ustb/backing-asset-usdm.md#rebasing-example) about USDM rebasing and the reward multiplier. &#x20;

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