US Treasury bond

US Treasury bond

US government debt with a maturity 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.

US Treasury bond.

US Treasury bonds are long-term government debt securities, typically issued with 30-year terms.

New bonds are sold at a par value of $1,000, and existing bonds trade in the secondary market at prices that fluctuate to reflect changing demand. These bonds, sometimes referred to as long bonds, are often used as a benchmark for market interest rates.

While interest on US Treasury bonds is federally taxable, it is exempt from state and local taxes. Treasury bonds are considered among the world's the most secure investments, since they are backed by the full faith and credit of the US federal government.

References in periodicals archive ?
Kexim is looking to pay 315 to 325 basis points over the comparable US Treasury bond yield for a five-year bond, and between 305-315 basis points above comparable US Treasury bond yield for a 10.
The ETNs are senior unsecured obligations issued by Deutsche Bank AG, London Branch, linked to the month-over-month performance of a total return version of the DB Long US Treasury Bond Futures Index or the DB Short US Treasury Bond Futures Index.
M2 EQUITYBITES-December 17, 2013--CME solution aims to close US Treasury bond futures "delivery gap"
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Portfolio statistics as of June 30, 2006(1) Percentage of Top ten holdings, including coupon and maturity net assets US Treasury Bond, 6.
69% Top Ten Holdings, including Coupon & Maturity US Treasury Bond 6.
In a note to customers on May 8th, 2000 regarding June US Treasury bond futures, IDEAglobal.
Redemption of any unconverted preference shares at maturity in 2001 will be at a premium, based on the four-year US Treasury bond rate on the pricing date of the issue.
Last week, Aso expressed concern that debt ceiling could affect the global economy and decrease Japans huge investments in US Treasury bonds, urging Washington to swiftly resolve its current fiscal crisis.
During the last debt-ceiling crisis, S and P downgraded the US government credit rating from A to +, which impaired investor confidence in US Treasury bonds and Kali warned that current crisis could cause similar reaction.
Contributing to last year's contraction was a rally in US Treasury bonds, which benefited from safe-haven flows as Europe's debt crisis simmered, as well as central bank buying both at home and abroad.