treasury note
Treasury notes are one of three main securities issued by the U.S. federal government. A person can buy a treasury note for 2, 3, 5, 7, or 10 years. Given their high demand and safety, treasury notes produce low interest rates. The owner receives interest payments every six months and the face value upon maturity. A person can buy notes by bidding at a government auction, using a third-party like a bank, or buying already issued notes at a resale market.
Treasury notes are to be contrasted with treasury bills and treasury bonds 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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