Treasury Notes

RECENT NEWS
MarketWatch  Oct 15  Comment 
Yield on 10-year Treasury note falls below 2%
MarketWatch  Oct 14  Comment 
Yield on 10-year Treasury note slides 11 basis points amid global growth fears
New York Times  May 28  Comment 
Despite the Fed’s slow unwinding of its easing program, bonds have paradoxically strengthened this year, even as equities have been in record territory.
USAToday.com  May 15  Comment 
They have more than $1 billion in cash, too.
FX Street  Mar 26  Comment 
A ForexTrading.TV Technical Analysis Video Alert for US TREASURY NOTE For more information, read our latest forex news and reports.




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Treasury bills, notes, and bonds are examples of default-free securities. Treasury notes (or T-Notes) mature in two to ten years. They have a coupon payment every six months, and are commonly issued with maturities dates of 2, 5 or 10 years, for denominations from $100 to $1,000,000.

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

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.

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