U.S. Treasury Bond

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U.S. Treasury Bond

A debt security backed by the full faith and credit of the United States government with a maturity of more than 10 years. They may be purchased directly from the government or from a bank; they have coupon payments payable every six months. 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. They are known informally as T-bonds. See also: Treasury bill, Treasury note.
References in periodicals archive ?
The Ministry of Finance plans to issue treasury bills (T-Bills) and bonds (T-Bonds) of EGP 160.75bn during September 2019, as part of a government plan revealed by Daily News Egypt earlier, including offering debt instruments of EGP 522bn during the first quarter (Q1) of the fiscal year (FY) 2019/20 to bridge the budget deficit.
ON Tuesday, the BTr has awarded the full P20 billion on offer for reissued three-year Treasury bonds (T-bonds) during its auction on Tuesday.
As for the outstanding T-bonds, three-year IOUs have a face amount of P114.9 billion; five-year debt paper, P261.5 billion; seven-year Treasury bonds, P608.9 billion; and 10-year T-bonds, P467.3 billion.
The T-bonds were offered in two installments, with the first valued at LE 1.25 billion with a three-year term and the second worth LE 1.25 billion with a seven-year term.
Reissued T-bonds fetch lower rates !-- -- Mary Grace Padin (The Philippine Star) - July 17, 2019 - 12:00am MANILA, Philippines Rates fetched by reissued seven-year Treasury bonds (T-bonds) plunged yesterday amid expectations of monetary policy easing and ample liquidity in the financial system, according to the Bureau of the Treasury.
"Proposals to issue T-bonds at below-market rates, most likely to the Central Bank, reflect the difficulty of cutting spending and tight liquidity in the financial system.
Yields of cash T-bonds edged down in steadied trading.
The government issued P64.65 billion worth of t-bills and t-bonds between October and December, less than its planned local borrowing of P135 billion for the quarter.
Egypt's central bank usually holds T-bonds auctions every Monday.
Foreign institutions remained bearish for the week with net selling of QR21.4mn (including t-bonds) versus net selling QR59.4mn in the prior week.
Interbank interest rates fell substantially over the past months reflecting a lax control over liquidity conditions in the money market by the NBR and they are already trading well below the level of the monetary policy rate.--Relatively elevated yields in the context of ample liquidity conditions, additional easing measures on external markets and expectations for a local monetary policy easing cycle kept alive the interest of foreign players for local RON T-bonds in April.
It was the 14th issuance of T-bonds in 2010, the government usually uses as means of financing the country's public debt.