Treasury bond


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Related to Treasury bond: Treasury bill, Treasury note

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.

Treasury bond

Longer-term, interest-bearing debt of the U.S. Treasury. Treasury bonds are quoted and traded in thirty-seconds of a point.

Treasury bond.

Treasury bonds are long-term government debt securities with a maturity date of 30 years that are issued in denominations of $1,000.

You can buy any number of these bonds at issue in $1,000 increments, but not more than $5 million. Those purchases as well as sales can be made through a Treasury Direct account. Existing bonds trade in the secondary market.

While interest on Treasury bonds is federally taxable, it is exempt from state and local taxes. Treasury bonds are considered among the most secure investments in the world, since they are backed by the federal government.

However, like all debt securities, they are subject to market risk. This means their prices change to reflect supply and demand.

References in periodicals archive ?
Treasury bonds and other long-maturity, high-duration assets (thus increasing their prices), (2) considerable uncertainty remains as to the magnitude of these yield changes and the exact channels by which central bank purchases influence yields.
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The gap results from the US Treasury's suspension of 30-year Treasury bond issuance between early 2001 and early 2006.
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PEKyN (CyHAN)- China's treasury bond futures closed higher on Wednesday, with the contract for settlement in March 2016 up 0.07percent to close at 100.81 yuan (15.57 U.S.
The Ministry of Strategy and Finance opened the Korea Treasury Bond (KTB) website (http://ktb.most.go.kr) on January 31, 2011, thus allowing investors easier access to information on KTB trading.
Treasury bond yield rose on eased credit worries and speculation of higher U.S.
During the first quarter 1994, we saw the 5-year Treasury bond yield increase 1.07 percentage points to 6.03 percent (a 21.6 increase in a 30 day period).
Those funds were the iShares 7-10 Year Treasury Bond ETF (IEF), Vanguard Total Bond Market ETF (BND), iShares Core U.S.
PEKyN (CyHAN)- China's treasury bond futures closed lower on Friday, with the contract for settlement in December down 0.1 percent to finish at 100.06 yuan (15.73 U.S.

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