Treasuries

Treasuries are debt securities issued by the U.S. federal government—including Treasury bonds (T-bonds), Treasury notes (T-notes), Treasury bills (T-bills), and Treasury Inflation-Protected Securities (TIPS)—to finance government spending. They pay interest (either periodically or at maturity), are considered virtually risk-free because they are backed by the U.S. government, and are commonly used by investors for safety, predictable income, and portfolio diversification. Treasury securities vary by maturity and interest structure, with T-bills maturing within a year, T-notes in 2–10 years, T-bonds in 20–30 years, and TIPS providing inflation-adjusted returns. Interest from Treasuries is subject to federal tax but exempt from state and local taxes.​