US Treasuries are debt instruments issued by the U.S. Department of the Treasury to finance government spending. They are considered among the safest investments globally, backed by the "full faith and credit" of the U.S. government. They are used by institutions, corporations, and wealthy investors as cash equivalents due to their low risk. The Bureau of the Fiscal Service manages the U.S. government debt since 2012.
Treasuries come in various forms, including Treasury bills (T-bills), Treasury notes (T-notes), Treasury bonds (T-bonds), Treasury Inflation-Protected Securities (TIPS), and Treasury Floating Rate Notes (FRNs). T-bills mature in a year or less and are sold at a discount. T-notes have maturities from 2 to 10 years, paying interest every six months. T-bonds have the longest maturities, ranging from 20 to 30 years, also with semi-annual interest payments. TIPS adjust their principal based on the Consumer Price Index (CPI) to protect against inflation. The prices of US Treasuries are determined by market demand and are sold at auction. As of early February 2026, a 10-year Treasury yielded around 4.15%. The average daily trading volume for US Treasuries reached $1,191.2 billion in January 2026.
