Treasury Securities

What is it?

What is a Treasury Security?

  1. U.S. Treasury securities—such as bills, notes and bonds—are debt obligations of the U.S. government. When you buy a U.S. Treasury security, you are lending money to the federal government for a specified period of time.

Types of Treasury Security

Individual investors may choose from a variety of Treasury securities: Treasury bills, notes, and bonds, Floating Rate Notes (FRNs), Treasury Inflation-Protected securities (TIPS), and U.S. Savings Bonds. Although each has its own features, advantages, and interest formulas, all share one important quality for anyone wanting a diversified portfolio — Treasury securities are safe and secure, backed by the full faith and credit of the United States government.

Why get one?

Treasury securities are considered a safe and secure investment option because the full faith and credit of the U.S. government guarantees that interest and principal payments will be paid on time. Also, most Treasury securities are liquid, which means they can easily be sold for cash.