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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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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References in periodicals archive

The chosen design, based on customer feedback, more precisely reflects exposure of 10-year US Treasury notes, the benchmark for US Treasury securities, and best serves the risk management needs of the marketplace."

CME to launch US Treasury note futures, options

Treasury note. Exhibit 6 shows that the price of gold is anything but stable and, despite its proponents' claims, is subject to significant price stability risks.

Implications of investments in equities versus Treasuries: focusing on fundamentals in a risky and uncertain environment, 2002-2013

To begin, nobody can accurately predict future return spreads between stocks and Treasury notes. That said, most forecasts tend to cluster in a relatively narrow range of 4 to 5 percent.

An attractive alternative to a peer index

Remember that, in principle, expected inflation should be accurately measured by subtracting the real yield on TIPS from the nominal yield on Treasury notes of the same maturity.

Expected inflation and TIPS

Finally, the underlying Treasury note security has an approximate 8 percent coupon rate.

Looking for a better hedge

markets fell on Wednesday after the yield on the 10-year Treasury note fell below the yield on 2-year Treasury notes on Wednesday morning for the first time since 2007.

Experts: Keep The Yield Curve Inversion In Perspective

Benchmark 10-year Treasury note yield has struggled to break below the 1.90 percent threshold, suggesting traders anticipating the U.S.

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Treasury Note and Bond market while providing a unique viewpoint into the active U.S.

NASDAQ OMX and PC-Bond to introduce U.S. Treasury Indexes

Looking at the yield curve benefit first, the average spread between the three-month Treasury bill and two-year Treasury note (weekly) for the 10 years ending December 1999 has been 81 basis points.

The Bonds That Tie Investment Goals Together

The Nasdaq surged 230.88 points as the 10-year Treasury note moved up 3/32, or 93.75 cents per $1,000 face value, and its yield, which moves inversely to prices, fell to 6.161% from 6.174%.

A new appetite for bonds