A Treasury bond by any other name.There are different kinds' of government securities Government securities Negotiable U.S. Treasury securities. If you follow the financial markets even peripherally, you know that one of the most closely watched is the bond market Bond Market The environment in which the issuance and trading of debt securities occurs. The bond market primarily includes government-issued securities and corporate debt securities, and facilitates the transfer of capital from savers to the issuers or organizations requiring capital for government projects, business expansions and ongoing operations., especially the movement in the price and yield of the 30-year U.S. Treasury bond treasury bond n. a long-term bond issued by the U. S. Treasury. (See: treasury bill, treasury note). Often called the long bond Long Bond A bond that matures in more than 10 years. When people refer to "the long bond," this typically is the 30-year U.S. treasury.Notes: Because they tie up money for such a long time, a long bond will usually pay investors a higher yield. See also: 30-Year Treasury , it's considered a benchmark security, and is used to set long-term rates on everything from home mortgages to credit cards. U.S. government securities--commonly referred to as Treasuries--are issued by the federal government to finance its operations and are backed by the full faith and credit full faith and credit n. the provision in Article IV, Section 1 of the U. S. Constitution which states: "Full faith and credit shall be given in each State to the public acts, records and judicial proceedings of every other state." Thus, a judgment in a lawsuit or a criminal conviction rendered in one state shall be recognized and enforced in any other state, so long as the original judgment was reached by due process of law. of the United States. In addition to the long bond, the government issues debt securities maturing at various times. Here is a brief list: Treasury bills Treasury bills Debt obligations of the US Treasury that have maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days, or 52 weeks. Treasury bills are sold at a discount from face value and do not pay interest before maturity. The interest is the difference between the purchase price of the bill and the amount that is paid to you either at maturity (this amount is the face value) or when you sell the bill prior to maturity.. Also called T-bills, these are short-term instruments maturing in 13, 26 or 52 weeks. They're sold at a discount, in denominations Denomination The stated value found on financial instruments.Notes: This term applies to most financial instruments with monetary values. The denomination for bonds and securities would be face value or par value. Whereas, for currency, the denomination would be the printed amount.For example, when you go to the bank to withdraw $100, the teller may ask you in what denominations 5's, 10's, 20's, 50's, 100's, or some combination thereof. of $10,000, with multiples of $5,000 above that level. Because they mature in one year or less, T-bills are the federal government's equivalent of money market instruments Money market instruments See: Cash investments. Treasury notes. Notes mature between two and 10 years from the date of issue. Denominations are $1,000, $5,000, $10,000, $100,000 and $1 million. Interest rates on notes are set by competitive-bid auction and interest is paid semiannually. Treasury bonds. These are the longest-term securities, maturing in 10 years or more. Bonds are sold in denominations of $1,000, $5,000, $10,000, $100,000 and $1 million. The 30-year bond cited in market wrap-up stories in newspapers is also referred to as the "current on-the-run coupon," since it is the one most recently auctioned by the government. To find out more about Treasuries and the bond market in general, go to the Bond Market Association Bond market association An international trade association of broker/dealers and banks in US government and federal agency securities, municipal securities, mortgage-backed securities, and money market securities.'s Website (www.investinginbonds.com).
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