US Treasury securities are debt instruments issued by the federal government. They are considered among the safest investments and serve as benchmarks for other interest rates.
Treasury Bills (T-Bills)
T-Bills are short-term securities with maturities of 4, 8, 13, 17, 26, or 52 weeks. They are sold at a discount and do not pay periodic interest; the return comes from the difference between purchase price and face value at maturity.
Treasury Notes and Bonds
Notes have maturities of 2, 3, 5, 7, or 10 years and pay interest semi-annually. Bonds have maturities of 20 or 30 years. Both are sold at par value with a fixed coupon rate.
TIPS and FRNs
Treasury Inflation-Protected Securities (TIPS) adjust principal based on CPI inflation. Floating Rate Notes (FRNs) pay interest that adjusts based on 13-week T-bill auction rates.