Treasury Bond: Treasury bonds are long-term government debt securities with a maturity date of 30 years that are issued in denominations of $1,000. You can buy any number of these bonds at issue in $1,000 increments, but not more than $5 million. Those purchases as well as sales can be made through a Tresaury Direct account. Existing bonds trade in the secondary market. While interest on Treasury bonds is federally taxable, it is exempt from state and local taxes. Treasury bonds are considered among the most secure investment in the world, since they are backed by the federal government. However, like all debt securities, they are subject to market risk. This means their prices change to reflect supply and demand.

 

Related Words

Treasury Bond: Treasury bonds are long-term government debt securities with a maturity date of 30 years that are issued in denominations of $1,000. You can buy any number of these bonds at issue in $1,000 . . . View Full Definition

US Treasury Bond: US Treasury bonds are long-term government debt securities, typically issued with 30-year terms. New bonds are sold at a par value of $1,000, and existing bonds trade in the secondary market . . . View Full Definition

Long Bonds: Bonds with a long current maturity. The 'long bond' is the 30-year U.S. Treasury bond.

Treasury Bills: U.S. Department of the Treasury, which issues all Treasury bonds, notes, and bills as well as overseeing agencies. Also, the department within a corporation that oversees its financial opera . . . View Full Definition