Long Bond
Definition of 'Long Bond'The 30-year U.S. Treasury Bond. The long bond is so called because it is the bond with the longest maturity issued by the U.S. Treasury. It pays interest semi-annually, and is the most actively traded bond in the world. Because it is backed by the full might of the U.S Treasury and has a low default risk, the long bond is considered one of the safest securities around. |
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Investopedia explains 'Long Bond'Like all U.S. Treasuries, the long bond attracts very substantial interest from overseas buyers during uncertain times in the global economy. The yield on the long bond has declined very significantly since 2000, and its price appreciation over this time frame has resulted in well above average returns for investors. The longer maturity of long bonds also makes them more vulnerable to rising interest rates than treasuries with shorter maturities. |
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