Thirty-Year Treasury

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Thirty-Year Treasury

A debt security backed by the full faith and credit of the United States government with a maturity of 30 years. They may be purchased directly from the government or from a bank; they have coupon payments payable every six months. Thirty-year 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 bidding. They are known informally as T-bonds. See also: Treasury bill, Treasury note.
References in periodicals archive ?
If a sponsor tries to match liabilities by investing in 30-year Treasury bonds and interest rates subsequently rise, for instance, the value of employees' accounts rises due to the higher crediting rate, but the value of the 30-year Treasurys held as investments fell.
You could go out and buy 30-year Treasurys at the beginning of the year, but if interest rates moved by 100 basis points, you would have a huge loss in your assets.
There is really only one investment that an investor can be certain of the one-year return at the beginning of the year: one-year T-bills, which tend to have significantly lower yields than 30-year Treasurys," Hueffmeier continues.
The year closed with 30-year Treasurys up 42 basis points (0.