U.S. Treasury Bond
A U.S. Treasury Bond is a U.S. Treasury security that is a government bond (a fixed U.S. Treasury bond interest rate).
- AKA: United States Government Bond.
- Context:
- It can be a member of a U.S. Treasury Bond Population.
- It can be traded in a U.S. Government Bond Market (a government bond market).
- It can entitle to Coupon Payment (e.g. on a six month schedule, and only taxed at the federal level).
- It can be tracked by a U.S. Treasury Bond Index, such as http://www.bloomberg.com/quote/BUSY:IND
- Example(s):
- a 10-Year U.S. Treasury Bond.
- a 30-Year U.S. Treasury Bond.
- one from the $1.27 trillion held by the Chinese Government on December 2014.
- one from the $1.18 trillion held by the Japanese Government on December 2014.
- …
- Counter-Example(s):
- a U.S. Treasury Bill, or a U.S. Treasury Note.
- a U.S. Municipal Bond.
- a Canada Bond, a Japan Bond, a Greek Bond, ...
- a U.S. Corporate Bond.
- See: U.S. Economy, Maturity (Finance), Coupon (Bond), Secondary Market, Pension Fund, Institutional Investor, Yield Curve.
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]
- 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]
- ↑ "Treasury Reintroduces 30-Year Bond". U.S. Federal Reserve. 13 April 2011. http://www.federalreserve.gov/releases/h15/data.htm. Retrieved 2012-08-22.
- ↑ "The United States on Track to Pay Off the Debt by End of the Decade". Clinton4nara.gov. 28 December 2000. http://clinton4.nara.gov/WH/new/html/Fri_Dec_29_151111_2000.html. Retrieved 2009-10-23.
- ↑ Template:Cite news
2013
- http://observationsandnotes.blogspot.com/2010/11/100-years-of-bond-interest-rate-history.html
- QUOTE: 100-year history of 10-year Treasury Note interest rates (yields) 1900 - 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. ...