Skip to main content
It looks like you're using Internet Explorer 11 or older. This website works best with modern browsers such as the latest versions of Chrome, Firefox, Safari, and Edge. If you continue with this browser, you may see unexpected results.

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.

Electronic Resources at NYPL

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.

 

External Resources