Treasury note

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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.

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.

References in periodicals archive ?
In Table 5 we see that the BOE's and Fed's ZLB implementations seem to have no effect on silver's correlation with either the Gilt or T-note, while silver's correlations with the JGBs over three rounds of ZLB are decidedly mixed.
The results obtained when the yield on the 10-year T-note was used are included (in the Tables), but not when the 3-month T-bill yield Wd5 was used, as they are almost the same.
T-bills 0.0536 0.0286 0.0171 0.0193 0.0035 0.0166 T-notes 0.0668 0.0649 0.0301 0.0650 0.0112 0.0607 T-bonds 0.0671 0.1088 0.0308 0.1104 0.0094 0.1037 Municipal bonds 0.0538 0.1150 0.0184 0.1175 0.0184 0.1175 Corporate bonds 0.0684 0.1017 0.0321 0.1034 0.0096 0.0974 Stocks 0.1381 0.1670 0.1004 0.1708 0.0737 0.1626 M2 0.0368 0.0201 0.0010 0.0193 -0.0095 0.0191 Housing 0.1148 0.0534 0.0760 0.0425 0.0728 0.0420 SMF 0.0985 0.0537 0.0609 0.0588 0.0513 0.0572 Financial composite 0.0879 0.0800 0.0512 0.0885 0.0372 0.0864 Debt composite 0.0469 0.0383 0.0109 0.0416 0.0027 0.0409 Bond composite 0.0641 0.0959 0.0280 0.0982 0.0239 0.0971 Gov't bond composite 0.0663 0.0759 0.0298 0.0769 0.0200 0.0747 Corp.
The 10-year T-note was off over 3 bps at the close at 2.560%.
Concurrently, the T-note is up 4 bps to 2.51%, having rebounded from 2.36% last week, a two year nadir.
The 2-year Treasury is off over 3 bps as well to test 2.29%, with the 10-year T-note 2.3 bps lower at 2.478%.
3-month versus the 10-year T-note yield spread has remained negative, a phenomenon which, as being highlighted in various market narratives, has preceded all recessions in the U.S.
yields lower, with the 10-year T-note retreating to levels below 2.53%, levels not seen since January 2018.
Treasury Action: benchmark yields probed January lows following the Fed all but abandoning its normalization path (one hike seen in 2020), with the T-note yield diving from 2.595% to 2.55% lows.
The 10-year T-note is at 2.63% from a low of 2.61%, while the 2-year is at versus 2.45%.