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Fixed Income Securities (Bonds): United States Treasury Securities

What Is a Treasury Security?

Treasury securities are bonds issued by the United States federal government, to generate revenue. Treasury securities are backed by the United States government, making a default very unlikely and the bond, therefore, a safe investment. Because of this guarantee, the return is very low, making government securities a conservative investment.

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Types of Treasury Securities

There are five major types of government securities:

  • T-Bills - securities with a maturity date of one year or less from the issuance.
  • T-Notes - securities with a maturity date between two, three, five, seven or ten years.
  • T-Bonds - securities with a maturity date of thirty years or greater.
  • Treasury-Inflation Protected Securities (TIPS) - securities indexed to inflation in order to protect investors from a decline in the purchasing power of their money. As inflation rises, TIPS adjust in price to maintain its real value.
  • Savings Bonds - securities that are non-transferrable and cannot be sold on secondary markets. Savings bonds are redeemable only by the purchaser or a beneficiary.


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