• T-bills are well developed and easily converted in cash• T-bills are well developed and easily converted in cash

• T-bills are well developed and easily converted in cash, even in secondary market however Commercial papers doesn’t have very well developed secondary market. Holders of commercial paper need to hold security until maturity, and in case if holder need to sell before maturity to raise money then it is high probability that brokers may charge high fees.
• Depth of secondary market is not as critical for term money market as for long term bond market
• Since all money market instruments are having same risk and characteristics, and interest rates of overnight money market and term segments are almost same. Therefore, these instruments are becoming close substitute of each other. Overnight money market is more liquid and volatile as compared to term segments