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Treasury Bonds

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Treasury bonds
Debt obligations of the US Treasury that have maturities of more than 10 years.

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.


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Deliverable securities for the new Long-Term Bond future will comprise cash Treasury bonds with at least 25 years of remaining term to maturity.
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Change treasury bonds to municipal bonds A municipal bond works like the traditional bond, but it is issued by a city or local government, which is exempt of state or federal income tax.
 
 
 
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