Medium-Term Bond

Medium-term bond

A bond maturing in two to ten years.

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medium-term bond

See intermediate bond.

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Medium-Term Bond

A debt security with a maturity in the medium-term. While there is no set definition of what constitutes the medium-term, it is generally accepted that medium-term bonds are those that mature somewhere within between one and 15 years. One of the most common medium-term bonds, the U.S. Treasury Note, usually has a maturity of 10 years. Medium-term bonds have become increasingly popular for what were formerly called long-term investors. This is especially true among Treasury securities, since Treasury Notes have increasingly replaced Treasury Bonds as benchmarks of the bond market.