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.
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References in periodicals archive ?
The slide was attributed to the "inverted gap" in rates for short- and long-term US Treasury bonds, which was taken as a warning that normally precedes a recession.
The first tranche included five-year bonds worth $2bn -- pricing 90 basis points over US Treasury bonds on five-year bonds.
Although the supply of safe assets remains steady, it is increasingly concentrated in US Treasury bonds. The proportion of overall supply of Aaa-rated government bonds is on a par with 2008 levels, despite central bank purchases and a deterioration in sovereign credit quality.
The first tranche included five-year bonds worth $2 billion -- pricing 90 basis points over US treasury bonds on five-year bonds and the second tranche for 10 years' worth $4 billion - was 135 basis points over US treasury basis points, while the third tranche was for 30 years worth $6 billion, 175 basis points above US treasury bonds.
This means German Bunds will outperform US Treasury bonds as the ECB opts for easy money while the Federal Reserve is forced to "tighten".
In Beijing on Thursday, Chinese Foreign Ministry spokeswoman Hua Chunying said China e welcomes the US progress in dealing with the issue, saying, "As the world's largest economy, the proper settlement of the issues works for US interests and benefits world economic stability and development." As of July 31, China held USD 1.277 trillion in US Treasury bonds and Japan held USD 1.135 trillion, according to the US Treasury Department.
During the last debt-ceiling crisis, S and P downgraded the US government credit rating from A to +, which impaired investor confidence in US Treasury bonds and Kali warned that current crisis could cause similar reaction.
In fact, the greenback strengthened as investors seeking a safe haven rushed into US Treasury bonds. A year later, when Lehman Brothers failed, the dollar benefited from the safe-haven effect yet again.
SLEUTHS from the income tax ( I- T) department along with a CBI team are grilling the smalltown businessman from whom US Treasury Bonds with a face value of $ 5 billion ( ` 27,240 crore) were seized on New Year's eve on the outskirts of Dharapuram near Coimbatore.
Contributing to last year's contraction was a rally in US Treasury bonds, which benefited from safe-haven flows as Europe's debt crisis simmered, as well as central bank buying both at home and abroad.
In July the UAE Central Bank announced that it does not own any US Treasury bonds or government financial instruments.