U.S. Treasury Bond

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A U.S. Treasury Bond is a U.S. Treasury security that is a government bond (a fixed U.S. Treasury bond interest rate).



References

2014

  • (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/United_States_Treasury_security#Treasury_bond Retrieved:2014-3-14.
    • Treasury bonds (T-Bonds, or the long bond) have the longest maturity, from twenty years to thirty years. They have a coupon payment every six months like T-Notes, and are commonly issued with maturity of thirty years. The secondary market is highly liquid, so the yield on the most recent T-Bond offering was commonly used as a proxy for long-term interest rates in general.[citation needed] This role has largely been taken over by the 10-year note, as the size and frequency of long-term bond issues declined significantly in the 1990s and early 2000s.[citation needed]

      The U.S. Federal government suspended issuing 30-year Treasury bonds for four years from February 18, 2002 to February 9, 2006.[1] As the U.S. government used budget surpluses to pay down Federal debt in the late 1990s,[2] the 10-year Treasury note began to replace the 30-year Treasury bond as the general, most-followed metric of the U.S. bond market. However, because of demand from pension funds and large, long-term institutional investors, along with a need to diversify the Treasury's liabilities - and also because the flatter yield curve meant that the opportunity cost of selling long-dated debt had dropped - the 30-year Treasury bond was re-introduced in February 2006 and is now issued quarterly. This brought the U.S. in line with Japan and European governments issuing longer-dated maturities amid growing global demand from pension funds.[citation needed] Since the 1970s the 10 Year Treasury Note and the 30 year fixed mortgage have had a very tight correlation.[3]

2013


The graph above shows U.S. interest rates beginning in 1900. From 1953 onward, the rates are 10-year U.S. Treasury Note rates, plotted monthly; prior to 1953, they're the less granular. ...