Treasury bonds

RECENT NEWS
Wall Street Journal  Jul 18  Comment 
Treasury bonds pulled back after the biggest rally in two months. The U.S. government debt market still logged a weekly price gain.
FX Street  Jul 8  Comment 
Longer-term Treasuries rose, pushing 10-and 30-year yields lower amid speculation an uptick in... For more information, read our latest forex news and reports.
USAToday.com  Jun 25  Comment 
And they kicked the S&P 500 down the stairs.
FX Street  Jun 25  Comment 
Rates Yesterday, global core bonds made some routine intra-day moves, driven by US eco data and a... For more information, read our latest forex news and reports.
FX Street  Jun 24  Comment 
A $30 billion sale of two-year Treasuries today will result in the highest yield in three years,... For more information, read our latest forex news and reports.
FX Street  Jun 18  Comment 
U.S. Treasury prices fell on Tuesday after consumer prices recorded their largest increase in more... For more information, read our latest forex news and reports.
FX Street  May 23  Comment 
Treasuries headed for their steepest weekly loss in a month before a government report economists... 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 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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