Cash Management Bill (CMB) is a short-term government debt instrument sold by the US Treasury.
The main difference between CMBs and T-Bills is that they are not sold on a regular basis, but only when the US government needs to raise cash in the short term. The maturity of this type of securities can vary from seven days to three to four months.
Due to the fact that this instrument can be issued outside the regular US Treasury securities issuance schedule, with no or minimal prior notice, CMBs are considered to be the most flexible instrument and allow for lower cash balances and the issuance of fewer long-term notes.
As a rule, such issues have a higher yield and they are intended for institutional investors, as they have high minimum investment requirements. The minimum face value of such securities is 100 USD, while the minimum purchase amount must be at least 1 million USD.
In the event that the CMB maturity date is the same as the T-Bill maturity date, such issue is fungible.
Since April 2020, the US government has been issuing 119-day CMBs on a regular basis to replenish cash reserves in the wake of the COVID-19 pandemic.
Example: USA, CMB 0% 14feb2023, USD (119D)