Treasury bonds

RECENT NEWS
Wall Street Journal  Jun 18  Comment 
Longer-dated U.S. Treasury bonds pulled back and shorter-dated notes strengthened due to concerns that the Federal Reserve’s go-slow approach in raising interest rates could generate inflation.
TheStreet.com  Jun 4  Comment 
NEW YORK (TheStreet) -- The yield on the benchmark 10-year Treasury bond has climbed above 2.3%, up from 1.7% in January. But according to David Wright, portfolio manager for the Sierra Core Retirement fund, that rise can't be sustained.  "A...
The Economic Times  Jun 3  Comment 
Investors sentiment on U.S. Treasuries deteriorated to its worst level in nine years in the latest week as selling since Monday.
Financial Times  Jun 1  Comment 
Citadel aims to trade directly with clients on electronic platforms
SeekingAlpha  May 14  Comment 
Wall Street Journal  May 12  Comment 
U.S. Treasury bonds rallied Tuesday and eliminated an earlier selloff as buyers stepped in after the yield on the benchmark 10-year note hit a six-month high.




 
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

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki