U.S. Treasury Security

(redirected from U.S. Treasuries)

U.S. Treasury Security

A tradable debt security owed by the United States government for a certain stated period. Each note has a stated interest rate which is paid semi-annually. Because the United States is seen as a very low-risk borrower, many investors see Treasury security interest rates (especially 10-year Treasury notes) as indicative of the wider bond market. Normally, the interest rate decreases with greater demand for the securities and rises with lower demand. For example, in December 2008, 10-year interest rates were the lowest in history due to deteriorating economic conditions and the consequent desire of investors for low-risk investments. U.S. Treasury securities are sold in auctions, usually once every few weeks. They are secured by the full faith and credit of the United States government. They should not be confused with U.S. savings bonds, which are not tradable, or indirect government obligations, which are not issued by the U.S. government itself. See also: Yield, Bond, Treasury Bond, Treasury Bill, Treasury Note.
References in periodicals archive ?
MarketAxess Holdings has entered into an agreement to acquire LiquidityEdge, aprovider of an electronic U.S. Treasuries marketplace.
Treasury has risen about 1.25% in the last 2 years and the rate on 30-year maturity U.S. Treasuries have also risen but by about 0.75% over the same two-year time period.<br />When interest rates rise, bond prices decline (with longer maturity bonds declining the most).
The yield on 5-year U.S. Treasuries climbed 27 bps during the Fourth Quarter to end the year at 2.21%, while yields on 10-year U.S.
However, the premium or special-ness of medium- and long-term U.S. Treasuries steadily declined, until it disappeared.
dollar peg in the aftermath of S&P's downgrade of the world's biggest economy, a central bank official told Reuters on Sunday, and saw no credit risk in investing in U.S. treasuries at present.
Summary: The United Arab Emirates prefers to use dollar-based instruments such as deposits rather than low-yielding U.S. Treasuries to manage foreign reserves, its central bank governor said Sunday.
China, Japan and some other major foreign countries &ndash; including even oil-exporting Iran &ndash; stepped up their purchases of U.S. Treasuries and dollars during April, likely as a safe haven away from a euro battered by a wave of budget deficit/default fears all across the EuroZone.
"The world does not have so much money to buy more U.S. Treasuries."
policymakers continue to push forward with unbridled spending and tax cut plans that raise the trajectory of future budget deficits, foreign investors are certain at some point to turn their backs on the ever-expanding stock of U.S. Treasuries, and turn instead to investments in other countries' assets.
Ryohei Muramatsu, manager of the Asian foreign exchange department at Commerzbank AG, attributed the dollar's modest slide against the yen to the recent trend of investors shifting funds back into euro-denominated bonds from U.S. Treasuries whose recent price dives have caused them to incur significant losses.
The Hong Kong Monetary Authority said Monday it will begin a new service to enable investors in the territory and the Asian region to settle U.S. Treasuries during Hong Kong office hours in the October-December quarter.
The news comes at a time when U.S. Treasuries have outperformed other fixed-income sectors so far this year.

Full browser ?