Treasury Securities

The US Government issues treasury bills, notes, bonds, inflation-protected securities and savings bonds.

Treasury Notes and Bonds: Treasury notes and bonds are coupon securities issued by the department of Treasury and backed by the US Government.

Treasury notes are intermediate-term (1 to 10 years) coupon debt, and treasury bonds are long-term (more than 10 years) coupon debt issued by the US Treasury. Because Treasury notes and bonds are coupon securities, they differ from Treasury bills.

Coupon securities pay interest every six months, whereas Treasury bills are discount securities on which periodic interest payments are not made. The US Treasury notes are issued with original maturities ranging form two, three, and five years, and the US Treasury bonds have 10 or more years maturity.

Treasury notes and bonds are issued with denominations of $1000 to $1 million. This issues are the safest bonds at intermediate or long-term periods available. Consequently these issues yields are lower than those from the comparable maturity agency and corporate bonds.

Treasury notes  and bonds that have been issued since 1985 are not callable, and payments of interest are done every six-month period (beginning six months from the date of issue). Interests paid by the Treasury securities are exempt of paying the state income taxes.