Government bonds are debt securities issued by a government to support public spending. When you buy a government bond, you are essentially lending money to the government for a set period. In return, the government commits to paying you periodic interest, known as coupon payments, and repaying the face value at the maturity date. These bonds are issued by governments to finance various projects, such as infrastructure development or covering budget deficits.
Key features of government bonds include a fixed maturity date, predetermined interest payments, and a sovereign guarantee, making them relatively low-risk investments. The U.S. Department of the Treasury issues U.S. government bonds, known as Treasury securities. These come in various forms, including Treasury bills (T-bills) that mature in one year or less, Treasury notes (T-notes) with maturities of one to ten years, and Treasury bonds (T-bonds) that mature in twenty to thirty years. Interest rates can be fixed or variable, with payments typically made semi-annually. The minimum purchase is generally $100. As of February 2026, rates for a 20-year Treasury bond were around 4.625% with a price per $100 at 99.492967, while 30-year bonds had rates of 4.750% with a price per $100 at 99.999398. These bonds can be purchased through auctions or on the secondary market.
