Treasuries are backed by the full faith and credit of the US government and are the global benchmark for a 'risk-free' rate. They pay semi-annual interest and are exempt from state and local taxes in the US.
Shorter maturities are called Treasury bills (under a year) and Treasury notes (2–10 years). Treasury bonds proper run 20 or 30 years.
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How do I buy Treasuries?
Directly at TreasuryDirect.gov, through most brokerages, or via Treasury ETFs.
Related terms
Bond
A loan you make to a company or government in exchange for regular interest payments.
Yield curve
A chart of bond yields at different maturities, usually for government debt.
Yield
The income an investment produces relative to its price, expressed as a percentage.
Corporate bond
A bond issued by a company to raise capital.