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 ?
ICBC is one of the earliest banks in China to sell savings T-bonds (electronic), sitting on top of the league table since the launch of first tranche in 2006.
3 percent plunge while T-bond yields fell over 130 basis points, inflation rose about 100 basis points, and the Fed funds rate fell 50 basis points.
Now, let's see how the support/resistance scenario has played out recently in the T-bond futures market.
Thus, the swap dealer would take the T-bond with a maturity closest to 13.
The Roll Tracker is available for the CME 2-, 5-, and 10-year US Treasury Note, the 30-year US Treasury Bond, and the Ultra T-Bond futures.
Since the start of the 21st century, under the combined effects of an upgrade of China s population structure, growth in residents wealth, progress in interest rate deregulation, and the development of Internet finance, the wealth of Chinese residents has expanded from bank savings and T-bonds to diversified financial assets including wealth management, fund, insurance, T-bond, third-party custody and precious metals, which is also well reflected in the asset structure changes of the Bank s personal customers.
Since a large majority of economic actors felt this way, the market interest rate (the two-year T-bond yield) had fallen to under 7 percent and the exchange rate basket was quite stable.
3%, the lowest level since May while T-bond yields are trading at record lows (3Y stands at 5.
In 2010, the ministry will focus on a "limited number" of benchmark maturities, increase the number of re-openings of securities in order to raise the target amount outstanding to around LE 10 billion per T-Bond, increase the standardization of the debt issuance, especially for government bonds, and make the government issues predictable and transparent.
TABLE 1 Variable Descriptions Variable Sample Start Date Frequency Transformation CPI excluding energy January 1959 Monthly Log difference PPI January 1948 Monthly Log difference GDP January 1949 Quarterly Log difference Industrial production January 1948 Monthly Log difference Unemployment rate January 1950 Monthly None Federal funds rate January 1956 Monthly None 1-yr T-Bond January 1955 Monthly None 10-yr T-Bond January 1955 Monthly None Term spread January 1955 Monthly None Default spread January 1948 Monthly None Real M2 January 1950 Monthly Log difference M2 velocity January 1961 Quarterly None TABLE 2 One-Step-Ahead Forecasts [DELTA]WTI NOPI Variable CCS [R.
T-Bond = 6-month-ahead forecast of 10-year Treasury note yield at constant maturity (% p.
1] [(Split-BBB + [Epsilon] T-Bond + [Delta] DefaultRate).