Bonds & Rates

Treasury security

A debt obligation issued by the U.S. Department of the Treasury.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

A U.S. Treasury's credit characteristics differ from a corporate bond's, but a market sale before maturity can still create an interest-rate-driven gain or loss.

IMPORTANT DISTINCTION

U.S. Treasury credit standing does not eliminate market-price, inflation, reinvestment or currency risk for the holder.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — bonds and fixed income

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