Treasury Securities
Many investors concerned with market volatility turn to U.S. Treasury Securities (“Treasuries”). Since US treasury securities provide the ultimate level of credit quality plus a reliable income stream, the market value of treasury securities does not fluctuate as much as other types of securities. There are many types of US Treasury securities including treasury inflation protected securities. Below are the basics of treasury securities.
What Are Treasury securities?
Treasury securities or Treasuries are debt obligations issued by the U.S. Government to raise cash needed to fund its operations.
When investors purchase Treasury securities or Treasuries, they are lending their money directly to the government.
In return for investing in Treasury securities, the government is obligated to pay investors periodic interest plus full principal at maturity.
The interest generated by Treasury securities or Treasuries is exempt from state and local taxation.
All Treasury securities or Treasuries are sold in minimum amounts of $1,000 with $1,000 increments.
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