Treasury note


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Related to Treasury note: Treasury bill, Treasury bond

U.S. Treasury Note

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

Treasury note

Intermediate-term (1-10 years), interest-bearing debt of the U.S. Treasury that may be purchased through a bank or brokerage firm or directly from the Federal Reserve. An active secondary market makes it easy to resell a Treasury note.

Treasury note.

Like US Treasury bills, Treasury notes are debt securities issued by the US government and backed by its full faith and credit.

They are available at issue through Treasury Direct in denominations of $1,000 and are traded in the secondary market after issue.

Notes are intermediate-term securities, with a maturity dates of two, three, five or ten years. The interest you earn on Treasury notes is exempt from state and local, but not federal, taxes.

And while the rate at which the interest is paid is generally less than on long-term corporate bonds, the shorter term means less inflation risk.

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Treasury Note futures will allow for delivery of original issue 10-year U.
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To understand their reasoning, consider a 10-year Treasury note with a nominal yield of 6 percent.
That, in turn, has driven up the price of Treasury notes.
Most notably, the yield on the 10-year Treasury note recently rose to 4.
For Series EE savings bonds held five years or more, the interest rate will vary based on the then-current yield on the five-year Treasury note.
375 percent, or 35 basis points - or hundredths of a percentage point - more than a comparable 5-year Treasury note.
Treasury Note due July 15, 2006 (minus accrued and unpaid interest from the last interest payment date to, but not including, the early settlement date, or final settlement date, in the event that Quebecor Media foregoes the early settlement date).

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