treasury bond

Treasury bonds are one of three main securities issued by the U.S. federal government. A person can buy a treasury bond for 20 or 30 years. Given their high demand and safety, treasury bonds produce low interest rates. The owner receives interest payments every six months and the face value upon maturity. A person can buy bonds by bidding at a government auction, using a third-party like a bank, or buying already issued bonds at a resale market. 

Treasury notes are to be contrasted with treasury bills and treasury notes which last for different times and have different interest rates. 

[Last reviewed in April of 2025 by the Wex Definitions Team]

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