Treasury Securities

What are Treasury Securities?

Treasury Bills (or T-Bills) are short-term zero coupon US government obligations, generally issued with various maturities of up to one year.

Treasury Bonds (or T-Bonds) are long-term (more than ten years) obligations of the US government that pay interest semiannually until they mature, at which time the principal and the final interest payment is paid to the investor.

Treasury Notes are the same as Treasury Bonds except that Treasury Notes are medium-term (more than one year but not more than ten years). (Source: CFTC)

Treasury securities—including Treasury bills, notes, and bonds—are debt obligations issued by the U.S. Department of the Treasury. Treasury securities are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government. The income from Treasury securities is exempt from state and local taxes, but not from federal taxes. (Source: SEC)