Treasury bond

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U.S. Treasury Bond

A debt security backed by the full faith and credit of the United States government with a maturity of more than 10 years. They may be purchased directly from the government or from a bank; they have coupon payments payable every six months. Treasury bonds may be bought competitively or non-competitively. In a non-competitive transaction, one takes the interest rate he/she is given on a T-bond. In competitive investing, one bids on a desired yield, but this does not mean it will be accepted. Treasury bonds are low-risk, low-return investments. The minimum purchase is $1,000 and the maximum is $5 million in non-competitive bidding or 35% of the offering in competitive. They are known informally as T-bonds. See also: Treasury bill, Treasury note.

Treasury bond

Longer-term, interest-bearing debt of the U.S. Treasury. Treasury bonds are quoted and traded in thirty-seconds of a point.

Treasury bond.

Treasury bonds are long-term government debt securities with a maturity date of 30 years that are issued in denominations of $1,000.

You can buy any number of these bonds at issue in $1,000 increments, but not more than $5 million. Those purchases as well as sales can be made through a Treasury Direct account. Existing bonds trade in the secondary market.

While interest on Treasury bonds is federally taxable, it is exempt from state and local taxes. Treasury bonds are considered among the most secure investments in the world, since they are backed by the federal government.

However, like all debt securities, they are subject to market risk. This means their prices change to reflect supply and demand.

References in periodicals archive ?
The independent variable and instrument are specified to be the long-term predictions that use an ARIMA model and last-year's inflation rate, respectively, to estimate the real short-term interest rate (which, in turn, is subtracted from t-bond yields to obtain an estimate of the market's prediction of long-term inflation).
For the price-process model, the volatility of default-free, noncallable debt prices is assumed to be proportional to maturity (Murphy, 1991), and the implied volatilities on 30-year debt are estimated by applying the Black (1976) option pricing model to the nearest-to-the-money call options on the second nearest CBT T-bond futures contract listed in the Wall Street Journal on each GNMA pricing date.
It's called the Relative Strength Index (RSI), and it is a mathematical computation of the oversold or overbought status of the market, in this case the T-bond futures.
The appropriate strategy is to sell a sufficient number of interest rate futures, using either T-bond futures or mortgage futures.
06 Yen/Dollar 30-Year Exchange T-Bond Rate Rate 3-Month T-Bill 0.
The interest rate futures portfolios examined are the Eurodollar, T-bond, and the all interest rate futures portfolio.
1] [(Split-BBB + [Epsilon] T-Bond + [Delta] DefaultRate).
Since that cut in late January, the 30 year T-Bond yields have gone from 6.
Since the velocity of M1 evidently responds to the T-bill rate with a lag, I have smoothed the T-bill rate by replacing it in Figure 3 with the T-bond yield.
These ETNs expand upon Deutsche Bank's product line-up that already includes leveraged ETNs linked to US Ultra T-Bond Futures.
The ystanbul Stock Market has recovered almost all of its exaggerated losses, while the exchange rate as well as interest rates have calmed down; the depreciation of the Turkish lira is much less than the depreciation of the Brazilian real or the Indian rupee, and T-Bond rates, slightly over 6 percent, are where they have to be, keeping real interest rates still around zero.