What are treasury notes?

28th Oct 2009 by Joseph Pousada

Treasury notes are government securities issued by the treasury department of the United States of America. This is a debt instrument backed by the full faith and credit of the US government. These treasury notes “are issued in terms of 2, 3, 5, 7 and 10 years and pay interest every six months until they mature.” (See reference). An investor looking for safety in their principal may consider this investment for the implicit safety of the instrument in that, if needed the treasury could print money to satisfy the debt obligation. An investor interested in these treasury notes presumably would also be interested in the interest payments every six months. Always consult with your personal financial advisor to see if these investments are suitable for you.

These debt instruments can be purchased directly from the Treasury or through your personal broker/dealer. Information on purchasing directly can be obtained through the website http://www.treasurydirect.gov.


Reference:
http://www.treasurydirect.gov/indiv/research/indepth/tnotes/res_tnote.htm


This answer is the subjective opinion of the writer and not of FinancialAdvisory.com