Makenzie, Yessica, Suzanna, Joseph M., Joseph G.
What are Treasury Notes?
Broken down definition- a brief record of something written down to assist the memory or for future reference that issued by the US Treasury who, manages Federal finances by collecting taxes and paying bills and by managing money, government accounts and public debt
This is a Treasury Note.
- In 1967,Treasury notes were redefined in statute to mature in 1 through 7 years (instead of 1 through 5 years), thus exempting Treasury securities maturing in 7 years or less from the 4-1/40 statutory ceiling on the interest rate payable on Treasury bonds.
- In 1970, Competitive auctions were introduced for the sale of Treasury notes in which the coupon was announced in advance and bidding was in terms of price
- In Oct. 1972 Began regular issues of 2-year notes maturing at the end of each calendar quarter. In 1974 and 1975, securities were sold to mature in 2-year note cycle slots at the end of each month.
- In 1976,10-year notes were offered for the first time under new legislation defining Treasury notes as securities maturing in at least one year, but not more than 10 years, from the date of the issue. Thus, the 4-1/4% interest rate ceiling does not apply to notes maturing in 10 years or less.
- In 1979,5-year, 2-month note auctions were regularized for settlement early in the last month of each calendar quarter, to mature on a regular mid-quarter refunding date.