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Treasury bonds

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Definition of Treasury bonds

Treasury Bonds Image 1

Treasury bonds

Debt obligations of the U.S. treasury that have maturities of 10 years or more.



Related Terms:

Risk premium

The reward for holding the risky market portfolio rather than the risk-free asset. The spread
between treasury and non-treasury bonds of comparable maturity.


Trade on top of

Trade at a narrow or no spread in basis points relative to some other bond yield, usually
treasury bonds.


Bonds payable

Amounts owed by the company that have been formalized by a legal document called a bond.


Brady bonds

bonds issued by emerging countries under a debt reduction plan.


Canada Savings Bonds

A bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value.



Collateral trust bonds

A bond in which the issuer (often a holding company) grants investors a lien on
stocks, notes, bonds, or other financial asset as security. Compare mortgage bond.


Convertible bonds

bonds that can be converted into common stock at the option of the holder.


Treasury Bonds Image 2

Corporate bonds

Debt obligations issued by corporations.


Cushion bonds

High-coupon bonds that sell at only at a moderate premium because they are callable at a
price below that at which a comparable non-callable bond would sell. Cushion bonds offer considerable
downside protection in a falling market.


Dollar bonds

Municipal revenue bonds for which quotes are given in dollar prices. Not to be confused with
"U.S. Dollar" bonds, a common term of reference in the Eurobond market.


Eurodollar bonds

Eurobonds denominated in U.S.dollars.


Euroyen bonds

Eurobonds denominated in Japanese yen.


General obligation bonds

Municipal securities secured by the issuer's pledge of its full faith, credit, and
taxing power.


Global bonds

bonds that are designed so as to qualify for immediate trading in any domestic capital market
and in the Euromarket.


International bonds

A collective term that refers to global bonds, Eurobonds, and foreign bonds.


Investment grade bonds

A bond that is assigned a rating in the top four categories by commercial credit
rating companies. For example, S&P classifies investment grade bonds as BBB or higher, and Moodys'
classifies investment grade bonds as Ba or higher. Related: High-yield bond.


Treasury Bonds Image 3

Long bonds

bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.


Long bonds

bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.



Serial bonds

Corporate bonds arranged so that specified principal amounts become due on specified dates.
Related: term bonds.


Short bonds

bonds with short current maturities.


Term bonds

Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
payable at maturity. Related: serial bonds


Treasury bill

Short-term U.S. government security issued at a discount from
the face value and paying the face value at maturity.


Treasury Bill

A short-term (less than one year) government discount bond.


Treasury Bill

Short-term government security.


Treasury bills

Debt obligations of the U.S. treasury that have maturities of one year or less. Maturities for Tbills
are usually 91 days, 182 days, or 52 weeks.


Treasury bond

Long-term debt obligation of the U.S. government that makes
coupon payments semi-annually and is sold at or near par value in $1000
denominations or higher. Face value is paid at maturity.


Treasury notes

Debt obligations of the U.S. treasury that have maturities of more than 2 years but less than 10 years.


Treasury securities

Securities issued by the U.S. Department of the treasury.



Treasury stock

Common stock that has been repurchased by the company and held in the company's treasury.


Treasury stock

Shares that were sold to the public but have since been repurchased by the company in the open market. treasury stock is deducted from the equity section, and is therefore a contraequity account.


treasury stock

Stock that has been repurchased by the company and held in its treasury.


U.S. Treasury bill

U.S. government debt with a maturity of less than a year.


U.S. Treasury bond

U.S. government debt with a maturity of more than 10 years.


U.S. Treasury note

U.S. government debt with a maturity of one to 10 years.


Yankee bonds

Foreign bonds denominated in US$ issued in the United States by foreign banks and
corporations. These bonds are usually registered with the SEC. For example, bonds issued by originators with
roots in Japan are called Samurai bonds.


Interest-only strip (IO)

A security based solely on the interest payments form a pool of mortgages, treasury
bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop
and the value of the IO falls to zero.


Money market

Money markets are for borrowing and lending money for three years or less. The securities in
a money market can be U.S.government bonds, treasury bills and commercial paper from banks and
companies.


qualified investments (Canada)

Qualified investments is the term used for investments that can be held in an RSP. These investments generally include:
Canadian dollar savings accounts, guaranteed investment certificates, term deposits
shares of Canadian and foreign companies listed on a prescribed stock exchange
shares of some over-the-counter U.S. and Canadian companies
shares of some small businesses
certain types of bonds and money-market investments such as treasury bills, Canada Savings bonds, Government of Canada bonds, provincial government bonds, Crown Corporation bonds, bonds issued by Canadian corporations listed on a prescribed stock exchange, and certain strip bonds
certain types of mortgages, including your own
certain covered call options, warrants and rights
certain mutual funds


Quality spread

Also called credit spread, the spread between treasury securities and non-treasury securities
that are identical in all respects except for quality rating. For instance, the difference between yields on
Treasuries and those on single A-rated industrial bonds.



 

 

 

 

 

 

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