Definition

Noun: 1. A long-term government debt security: A Treasury bond is a type of debt instrument issued by a national government's treasury department to finance its spending. It is characterized by having the longest maturity period among typical government securities, specifically 10 years or longer from the date of issue. Investors lend money to the government by purchasing these bonds and receive periodic interest payments until the bond matures, at which point the principal amount is repaid.

Usage Examples

• Noun:
  • Conservative investors often include Treasury bonds in their portfolios for stability and predictable income.
  • The government is issuing new 30-year Treasury bonds to fund infrastructure projects.
  • The yield on the 10-year Treasury bond is a key benchmark for interest rates.

Advanced Usage

• "to be long on Treasury bonds": To hold a significant investment in Treasury bonds, anticipating their value will rise or seeking safety.
  • Given the economic uncertainty, many pension funds are long on Treasury bonds.
• "Treasury bond auction": The formal process through which the government sells new Treasury bonds to primary dealers and investors.
  • Demand was strong at this week's Treasury bond auction.

Variants and Related Words

• Treasury security (n): The broader category of debt obligations issued by the U.S. Department of the Treasury, which includes Treasury bills (T-bills), Treasury notes (T-notes), and Treasury bonds (T-bonds).
• T-bond (n): A common abbreviation for Treasury bond.
• Government bond (n): A bond issued by a national government. A Treasury bond is a specific type of U.S. government bond.

Synonyms

• Government bond: A more general term for debt issued by any national government.
• Sovereign bond: A bond issued by a national government in a foreign currency.

Related Financial Terms (Not Phrasal Verbs)

• Coupon rate: The fixed annual interest rate paid by a bond, expressed as a percentage of its face value.
• Maturity date: The future date on which the principal amount of a bond is scheduled to be repaid to the investor.
• Yield: The effective rate of return on a bond, considering its current market price and interest payments.

Noun

1. a debt instrument with maturities of 10 years or longer