Which characteristic is true for Treasury Bills?

Treasury Bills, commonly known as T-Bills, are short-term government securities that are indeed issued at auction by the Debt Management Office (DMO) or equivalent government body responsible for public debt management. This auction process is fundamental to their issuance as it allows the government to determine the market's demand for these securities and to set an appropriate discount rate or yield.

T-Bills are sold at a discount to their face value and do not pay periodic interest (coupons); instead, they are redeemed at their face value upon maturity. This structure allows T-Bills to be characterized by a low level of risk, often leading to their classification as a safe investment compared to other securities.

The other options provide misleading characteristics: T-Bills do not offer high coupon payments, they have a maturity of one year or less, and they are generally considered accessible and less expensive in comparison to other forms of government debt. Thus, option B accurately reflects the essential characteristic of Treasury Bills as a product of a formal auction process by the DMO.