U.S. Treasury Security

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U.S. Treasury Security

A tradable debt security owed by the United States government for a certain stated period. Each note has a stated interest rate which is paid semi-annually. Because the United States is seen as a very low-risk borrower, many investors see Treasury security interest rates (especially 10-year Treasury notes) as indicative of the wider bond market. Normally, the interest rate decreases with greater demand for the securities and rises with lower demand. For example, in December 2008, 10-year interest rates were the lowest in history due to deteriorating economic conditions and the consequent desire of investors for low-risk investments. U.S. Treasury securities are sold in auctions, usually once every few weeks. They are secured by the full faith and credit of the United States government. They should not be confused with U.S. savings bonds, which are not tradable, or indirect government obligations, which are not issued by the U.S. government itself. See also: Yield, Bond, Treasury Bond, Treasury Bill, Treasury Note.
References in periodicals archive ?
benchmark treasury security for its previously announced offer to purchase its 3.
14) Similarly, when a fixed-rate corporate debt issue is initially sold, it is typically marketed in terms of a yield spread to a particular Treasury security rather than at an absolute yield or price.
The particular triggers of HOEPA are an APR 10 percentage points above the yield on a Treasury security of comparable maturity or closing fees exceeding 8 percent of the loan amount.
Since late September the 30-year treasury bond has been the only treasury security trading above 6 percent.
Treasury Security due May 15, 2008 (the "Reference Treasury Security"), as calculated by Credit Suisse Securities (USA) LLC ("Credit Suisse"), acting as dealer manager, in accordance with standard market practice, based on the bid side price for the Reference Treasury Security on the price determination date, as described in the tender offer documents, plus (B) a fixed spread of 50 basis points; minus
Treasury security that has been "stripped" into separately tradable components.
The yield on a Treasury security is the constant interest rate at which the present discounted value of future coupon and principal payments equals the current price of the security.
Treasury security related to the reset rate in connection with the proposed remarketing of its 5.
In 1985, the cost of a transaction involving a physical, marketable Treasury security was about $20; in 1991, the cost of completing a Treasury Direct transaction was about $2.
Treasury Security at the time a holder agrees to tender the debt securities.