5-Year Treasury Security

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5-Year Treasury Security

A debt owed by the United States government for a period of five years. Each security has a stated interest rate, which is paid semi-annually. Unlike a 10-year Treasury note, it is not necessarily considered indicative of the state of the wider bond market. However, because the United States is seen as a very low-risk borrower, some investors seek out five-year Treasury securities (and other Treasury securities) when they are not confident in future stock performance. See also: yield, bond, treasury note, treasury bond, treasury bill.
References in periodicals archive ?
In short, the Fed's ZIRP has "succeeded" in keeping the real return on a low-risk, five-year Treasury security negative for years on end, in effect allowing the Treasury to reap a real return from those who bought its bonds rather than compensating them for their lending.
Series EE savings bonds bought on or after May 1, 1997, earn interest based on five-year Treasury security yields.