30-Year Treasury

(redirected from 30-Year Treasury Bonds)

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 ?
Department of Treasury stopped issuing the 30-year Treasury bonds, the rates declined significantly causing an overstatement of the magnitude of the obligation which translated to a much higher cost for employers and/or lowering of benefits prospectively for many employees covered by defined benefit plans.
However, the Department of the Treasury stopped issuing new 30-year Treasury bonds in 2001.
In 1991, for example, a peak amount of $47 billion of 30-year Treasury bonds was auctioned by the U.
Long-Term's basic strategy was to bet on the eventual convergence between the prices of extremely similar assets (the archetypal case being 30-year Treasury bonds issued today, "on the run," and the same bonds issued six months ago, "off the run").
Because the outstanding 30-year Treasury bonds carry higher yields than the current market yield on comparable securities, the department paid sellers $318 million in premiums to cash in early.
The yields on the 30-year Treasury Bonds began to turnaround in mid-February, right on the heels of the Federal Reserves last cut of a quarter percent in short term rates.
Third, yields range from 100 to 200 basis points higher than short-term Treasury notes, and sometimes even exceed the rates on 30-year Treasury bonds.
It was the era when 30-year Treasury bonds were yielding 14% to 16% and local banks were offering returns of 9% on certificates of deposits (CDs) and money-market accounts.
The exchange currently maintains markets for futures and options on 2-, 5- and 10-year Treasury notes and on 30-year Treasury bonds.
The current discount rate, based on 30-year Treasury bonds, overstates the funding necessary to meet plan benefit obligations.
Yields on 30-year Treasury bonds dropped soon after Wednesday's inflation report, and closed at 6.
Eurex US, located in and operating out of Chicago, will begin trading at 7 pm CST on February 8 and will initially offer trading in futures and options on 2-, 5- and 10-year Treasury notes and on 30-year Treasury bonds.