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The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

Treasury Bonds

Treasury bonds are long-term debt issued by the US government. Newly issued bonds currently have maturities of 20 or 30 years and pay a fixed rate of interest every six months. At maturity, the investor receives the bond’s face value. The fixed payments make their value sensitive to changing market rates. When newly issued bonds offer higher interest, an older lower-paying bond may need to fall in price to remain attractive. Long maturity also makes inflation expectations important because future payments may buy less in real terms. Treasury bonds are one part of the wider Treasury market and should not be used as a name for every government security.

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