5-Year Treasury Security

5-Year Treasury Security

A debt owed by the United States government for a period of five years. Each security has a stated interest rate, which is paid semi-annually. Unlike a 10-year Treasury note, it is not necessarily considered indicative of the state of the wider bondmarket. However, because the United States is seen as a very low-risk borrower, some investors seek out five-year Treasury securities (and other Treasury securities) when they are not confident in future stock performance. See also: yield, bond, treasury note, treasury bond, treasury bill.