5-Year Treasury Security

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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 bond market. 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.
References in periodicals archive ?
In short, the Fed's ZIRP has "succeeded" in keeping the real return on a low-risk, five-year Treasury security negative for years on end, in effect allowing the Treasury to reap a real return from those who bought its bonds rather than compensating them for their lending.
359%, or 66 basis points, over the on-the-run 53/4% five-year Treasury security due November 2005.
449 percent, or 80 basis points over the on-the-run five-year Treasury security due May 15, 2005.