Treasuries
Treasuries are debt securities issued by the United States government. They are considered one of the safest investments available, as they are backed by the full faith and credit of the U.S. government. Treasuries are issued in a variety of maturities, ranging from four weeks to 30 years. They are sold in denominations of $100, $1,000, $5,000, $10,000, and $100,000.
History of Treasuries
Treasuries have been issued by the U.S. government since the late 18th century. The first Treasury bonds were issued in 1790 to help finance the Revolutionary War. Since then, Treasuries have been used to finance a variety of government activities, including wars, infrastructure projects, and social programs. Treasuries are also used by the Federal Reserve to manage the money supply and interest rates.
Treasuries are sold through auctions, with the interest rate determined by the demand for the securities. The U.S. Treasury Department also offers a variety of other debt instruments, including Treasury bills, Treasury notes, and Treasury inflation-protected securities (TIPS).
Comparison of Treasuries
| Type | Maturity | Interest Rate |
|---|---|---|
| Treasury Bills | 4 weeks – 52 weeks | Fixed |
| Treasury Notes | 2 years – 10 years | Fixed |
| Treasury Bonds | 30 years | Fixed |
| Treasury Inflation-Protected Securities (TIPS) | 5 years – 30 years | Adjustable |
Summary
Treasuries are debt securities issued by the U.S. government and are considered one of the safest investments available. They are sold in a variety of maturities, ranging from four weeks to 30 years, and are sold through auctions. For more information about Treasuries, visit the U.S. Treasury Department website or the Federal Reserve website.
See Also
- Bonds
- Municipal Bonds
- Corporate Bonds
- Government Bonds
- Treasury Bills
- Treasury Notes
- Treasury Inflation-Protected Securities (TIPS)
- Money Market Funds
- Certificates of Deposit (CDs)
- Savings Accounts
