US Treasury Securities

Macro & the Fed

Treasuries are the debt securities the US Treasury issues to borrow money.

Those maturing in up to a year are called bills, those of 2 to 10 years notes, and the 20 and 30-year ones bonds. A bond's price and its yield move in opposite directions: when the price falls, the yield rises. The 10-year Treasury yield is a reference point for many calculations, from mortgage rates to stock valuations.

Example

If you buy a bond with a $1,000 face value that pays $40 a year for $1,000, your yield is 4%. If its market price drops to $950, the same $40 is a current yield of about 4.2% for a new buyer.

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