U.S. Treasury Security

(redirected from US Treasury Security)

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 ?
17 August 2011 - Fitch confirmed on Tuesday the United States' (US) long-term foreign and local currency issuer default ratings (IDRs) and US Treasury security ratings at AAA.
The financing, which represents 60% loan-to-value, was arranged on a 7-year term with 30-year amortization with a competitive spread over the 7-year US Treasury Security. In the midst of the capital markets credit crunch, the life company lender was able to commit and fund the loan in a timely manner.
The redemption price of the notes will be the greater of 100% of the principal amount of the notes or the sum of the present values of the remaining scheduled payments on the notes, discounted to the redemption date as described in the notes, using a reference rate for a comparable US Treasury security plus 20 basis points.