Treasury Note

A Treasury note, often referred to as a T-note, is a type of government debt security issued by the United States Department of the Treasury. It represents a medium to long-term debt obligation with a maturity period ranging from two to ten years. Treasury notes are considered low-risk investments because they are backed by the full faith and credit of the U.S. government. Investors purchase Treasury notes as a way to lend money to the government in exchange for periodic interest payments and the return of the principal amount upon maturity. The interest on Treasury notes is paid semi-annually. Treasury notes are actively traded in the financial markets and are highly liquid, making them attractive to investors seeking a stable source of income with relatively low risk. They are often used by investors as a means of preserving capital and diversifying investment portfolios. Additionally, Treasury notes are commonly used as benchmarks for pricing other fixed-income securities and loans.