Treasury Bond Market Overview
The treasury bonds are sold in a treasury bond market. Apart from the United States, there are treasury bond markets in France and the United Kingdom. The secondary market for the treasury bonds has a fair amount of liquidity.
Owing to the high liquidity of the secondary markets for the Treasury Bonds, the interest rate of the treasury bond was used as a substitute for the long term interest rates.
Treasury Bonds
The treasury bonds have the longest term periods amongst the debt securities that are issued by the United States government. The maturity period of the treasury bonds could range from ten to thirty years.
However, most of the treasury bonds, that are issued, have a maturity period of thirty years. Like the T Notes, the interest of the Treasury Bonds are paid after a period of six months.
Treasury Bond Revival
The United States government did not issue the Treasury Bonds after the 31st of October, in the year 2001. However, they had to revive the Treasury Bond from the month of February, in the year 2006. The Treasury Bonds are now issued after every three months.
The Treasury Bonds had to be revived due to pressure from the following parties:
- Major and Long Term Institutional Investors
- Pension Funds
Treasury Bond Yield
The following chart gives an indication of the yield of the various types of treasury bonds and the amount of change, the yields have undergone in the recent years:
| Treasury Bond Types |
Yield |
Change In Yield |
| 30 year Treasury Bonds |
4.86 |
+0.11 |
| 2 year Treasury Bonds |
4.09 |
+0.12 |
| 10 year Treasury Bonds |
4.64 |
+0.13 |
| 5 year Treasury Bonds |
4.33 |
+0.14 |
Methuselah
The Methuselah is a bond being issued in the United Kingdom and France. It has a maturity period of 50 years.