Treasury Bonds

RECENT NEWS
The Economic Times  12 hrs ago  Comment 
India reduced its exposure to US treasury securities in Feb due to a slowdown in portfolio investment resulting in lower surpluses.
The Economic Times  Apr 19  Comment 
India reduced its exposure in US treasury bonds and by 1.6% or $1.1billion in February to $67 billion, data released by the US treasury department.
Wall Street Journal  Apr 14  Comment 
Treasury bond prices fell as a strong retail sales report reduced investors' appetites for ultra safe U.S. government debt.
The Economic Times  Apr 11  Comment 
The yield on US 30-year Treasury bonds fell to its lowest level since last summer on growing losses in US stock index futures, stoking safety bids.
New York Times  Apr 9  Comment 
The paper-less approach makes it harder to give bonds as presents — and also poses a challenge to those without bank accounts or Internet access.
Reuters  Apr 7  Comment 
Wall Street stocks slumped on Monday, extending a broad retreat in global equities markets from a six-year high touched last week, while U.S. Treasuries' yields moved lower.
Reuters  Apr 7  Comment 
Wall Street stocks sank on Monday, joining a broad retreat in global equities markets from a six-year high touched last week, while U.S. Treasuries' yields moved lower.
Gold Stocks Today  Apr 1  Comment 
China holds over a trillion dollars in US treasury debt. And the money just got too hot for them to handle. Could this be the beginning of the currency war everyone's been talking about? Read on...
The Economic Times  Mar 28  Comment 
Traders this week have taken some profits from flattening trades that benefited from weakness in intermediate-dated notes after Yellen's comments.
FX Street  Mar 28  Comment 
Investors bypassing the Federal Reserve's network of primary dealers won record amounts of... For more information, read our latest forex news and reports.




 
TOP CONTRIBUTORS

Treasury bills, notes, and bonds are examples of default-free securities. Treasury bonds (T-Bonds, or the long bond) have the longest maturity, from ten years to thirty years. They have coupon payment every six months like T-Notes, and are commonly issued with maturity of thirty years.

Treasury notes and bonds operate differently from a Treasury Bill. A note denotes a security with a date of maturity larger than one year up to ten years. A bond is a security that exceeds ten years in maturity. Notes are offered in lengths of two, three, five, and ten years. Bonds are only offered in a length to maturity of thirty years.

Treasury notes and bonds pay coupon payments every six months including the final date of maturity. For example, if you purchased a $100,000 two-year Treasury note on January 15 2008 at an annual rate of 5%, then your income stream would look like this:

Date Income ($)
7/15/08 2,500
1/15/09 2,500
7/15/09 2,500
1/15/10 102,500

A stock chart for the 30 YR T-Bond



Inflation-Protected Treasury Notes and Bonds

The U.S. government also offers inflation-indexed notes and bonds, also known as TIPS (Treasury Inflation-Protected Securities). They are offered in lengths of five, ten, and twenty years to maturity. While the interest-rate payments stay the same, they are applied to the principal, which is adjusted for inflation every six months.

For more information, see also

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