US Treasury bond

US Treasury bond

US government debt with a maturity of more than 10 years.

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.

US Treasury bond.

US Treasury bonds are long-term government debt securities, typically issued with 30-year terms.

New bonds are sold at a par value of $1,000, and existing bonds trade in the secondary market at prices that fluctuate to reflect changing demand. These bonds, sometimes referred to as long bonds, are often used as a benchmark for market interest rates.

While interest on US Treasury bonds is federally taxable, it is exempt from state and local taxes. Treasury bonds are considered among the world's the most secure investments, since they are backed by the full faith and credit of the US federal government.

References in periodicals archive ?
However, the lower number of Aaa-rated issuers and the increase in US Treasury bond issuance means that US Treasuries now account for around 75 per cent of all Aaa-rated government bonds available, up from 50 per cent in 2008.
As in the 2013 "taper tantrum", the rise in US Treasury bond yields will continue to pressure the asset class and the Powell Fed could well raise the Fed Funds rate another 100 basis points in 2018-19 while shrinking the Fed balance sheet below $4 trillion.
Summary: Yield on 10-year US Treasury bond hit its highest level in four years last week
In contrast, there has been buying of safe-haven assets of gold and the Japanese yen, and US Treasury Bond yields turned lower.
US-based OpenDoor Securities (OpenDoor), a platform that was designed to improve liquidity in the US Treasury bond markets, has said that it has hired a senior managing director.
Due to the US Treasury Department's suspension of 30-year bond issuance between 2001 and 2006, the gap in the exposures of the existing 10-Year US Treasury note and the US Treasury bond futures has expanded from approximately eight years to about 14 years, creating customer demand for a new product that establishes 10-year yield exposure.
The most important theme in the world financial market since August has been th82dramatic rise in the US dollar against the world's major currencies, notably the Euro (economic contraction in Germany due to Russia sanctions and the subsequent Bundesbank/ECB "shock and awe" monetary easing), sterling (risk premium on the Scots referendum), Japanese yen (spike in US Treasury bond yields on strong economic data and Abenomics reforms) and the Australian dollar (collapse of LNG, crude oil and iron ore prices).
I had projected a bloodbath in the US Treasury bond market since late 2016, when it was obvious that Trump's tax reform would double the US budget deficit at the same time as the Federal Reserve prepared to "normalise" or shrink its balance sheet by $470 billion.
The offshore bonds were priced at 3.35 percent, about 166 basis points above the five-year US Treasury bond yields, the report noted.
BANKING AND CREDIT NEWS-December 17, 2013--CME solution aims to close US Treasury bond futures "delivery gap"
South Korea's Suhyup Bank is planning to price a five-year US dollar bond with a yield spread of around 285 basis points over the comparable US Treasury bond yield.
Kexim is looking to pay 315 to 325 basis points over the comparable US Treasury bond yield for a five-year bond, and between 305-315 basis points above comparable US Treasury bond yield for a 10.25-year bond tranche.