30-Year Treasury

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30-Year Treasury

A debt security owed by the United States government for a period of 30 years. Each 30-year Treasury has a stated interest rate, which is paid semi-annually. Because the United States is seen as a very low-risk borrower, many investors see 30-year Treasury interest rates as indicative of the state of the wider bond market. Normally, the interest rate decreases with greater demand for 30-year Treasury securities and rises with lower demand. As with other U.S. Treasury securities, 30-year Treasuries are negotiable and may be traded on an exchange or over-the-counter. See also: yield, bond, treasury note, treasury bond, treasury bill.
References in periodicals archive ?
This disparity between the cost of financing which is usually pegged to 30-year treasuries, and the lease rent being paid by the tenant, offers an opportunity to negotiate a high return.
By contrast, if the yield curve is "flat," there's less of a difference in the interest paid by two-year bonds and 30-year Treasuries.
Stocks followed bonds higher as the yield on 30-year Treasuries - a benchmark used to determine the interest charged on many loans - fell below 6.
At the same time, yield spreads between 2-year and 30-year Treasuries widened over 30 bps.
By the end of last year, 30-year Treasuries had been slashed to single digits.
When subjected to some CMO stress tests, 30-year Treasuries appear in the V3 category.
At one firm, for example, the interest rate risk exposure of every fixed-income security was translated into the corresponding quantities of two-year, 10-year and 30-year treasuries that, if sold, would offset that exposure.
We sold bonds maturing in three years or less and bought 30-year Treasuries.
The steady dollar also helped lift bond prices, pushing down yields of 30-year Treasuries to 5.
At a time when 30-year Treasuries yield little more than 5 percent, there is much to be said for a partially tax-sheltered 7 percent stock dividend.
I recommend 30-year Treasuries, zero coupon bonds, and bond futures, which will enjoy even more appreciation as rates fall.