Search Investopedia

Treasury Bond - T-Bond

Filed Under » ,
Dictionary Says

Definition of 'Treasury Bond - T-Bond'

A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest payments semi-annually and the income that holders receive is only taxed at the federal level.
Investopedia Says

Investopedia explains 'Treasury Bond - T-Bond'

Treasury bonds are issued with a minimum denomination of $1,000. The bonds are initially sold through auction in which the maximum purchase amount is $5 million if the bid is non-competitive or 35% of the offering if the bid is competitive. A competitive bid states the rate that the bidder is willing to accept; it will be accepted depending on how it compares to the set rate of the bond. A non-competitive bid ensures that the bidder will get the bond but he or she will have to accept the set rate. After the auction, the bonds can be sold in the secondary market.

Related Definitions

  •

    30-Year Treasury

    A U.S. Treasury debt obligation that has a maturity of 30 years. The 30-year Treasury used to be the bellwether U.S. bond but now most consider the 10-year Treasury to be the benchmark.
    Read More »

  • Government Security

    A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default.
    Read More »

  • Off-The-Run Treasuries

    All Treasury bonds and notes issued before the most recently issued bond or note of a particular maturity. These are the opposite of "on-the-run treasuries".
    Read More »

    • On-The-Run Treasuries

      The most recently issued U.S. Treasury bond or note of a particular maturity. These are the opposite of "off-the-run treasuries".
      Read More »

    • Treasury Bill - T-Bill

      A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and ...
      Read More »

    • Treasury Note

      A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years. Treasury notes can be bought either directly from the U.S. government or ...
      Read More »

    • Bond Purchase Agreement

      A legally binding document between a bond issuer and an underwriter establishing the terms of a bond sale. The terms of a bond purchase agreement will include sale conditions, sale ...
      Read More »

    • Bondholder

      The owner of a government or corporate bond. Being a bondholder is often considered safer than being a shareholder because if a company liquidates, it must pay its bondholders before it ...
      Read More »

    • Bill Auction

      A public auction for Treasury bills that is held weekly by the U.S. Treasury. Currently there are 17 authorized primary dealers that are required to bid directly upon each issue. This is ...
      Read More »

    • Liberty Bond

      A type of bond issued by the U.S. government during World War I. Liberty bonds were introduced as a means of financing the war effort in Europe. Bonds that were sold under the same name ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions