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 ?
Summary: TEHRAN (FNA)- Total foreign holdings of the US Treasury securities continued to rise in February, indicating rising international demand for American government debt, the US Treasury Department said.
Overall foreign holdings of the US Treasury securities reached $5.
Thereafter, the interest rate will adjust on an annual basis to the sum of the weekly average yield on US Treasury Securities adjusted to a constant.
Unless the holder elects to make separate cash settlement, the Corporate Unit holder's purchase obligation will be satisfied from the proceeds of a portfolio of US Treasury securities held in a collateral account that matures on February 15, 2006.
The loans included in series 2004-Q and 2004-AA provide for a fixed interest rate during an initial period of approximately seven years, after which the interest rate will adjust on an annual basis to the sum of the weekly average yield on US Treasury Securities adjusted to a constant maturity of one year and a gross margin.
Unless the holder elects to make a separate cash settlement, the Corporate Unit holder's purchase obligation will be satisfied from the proceeds of a portfolio of US Treasury securities held in a collateral account that matures on February 15, 2005.