[Chad C. Mulligan]

The US Treasury wishes it could issue T-bills without interest.

FWIW - Interest on bills held by the Fed is returned to the Treasury, isn't it?

[Right_Wing_Madman]

FWIW - Interest on bills held by the Fed is returned to the Treasury, isn't it?

Nope. The Federal Reserve operates like a normal bank that's in the business of making money. Ideally, the Treasury interest the Fed receives is greater than the interest the Fed pays to other banks for their deposits.