Treasuries (Bills, Notes, and
Bonds)
The United States government issues several different
kinds of bonds through the Bureau of the Public Debt,
an agency U.S. Department of the Treasury. Treasury
debt securities are classified according to their maturities:
- Treasury Bills have maturities of one year
or less.
- Treasury Notes have maturities of two to ten
years.
- Treasury Bonds have maturities greater than
ten years.
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Treasury Bills
Treasury bills (T-bills) are debt obligations of the
U.S. Government and are backed by the Government’s full
faith and credit. A bill is a short-term investment
issued for a year or less. Investors buy bills at a
discount from par (or "face") value. The difference
between the purchase price and what the investor receives
at maturity is interest.
The interest rate of T-Bills is determined
at each auction, depending on what bidders are willing
to pay. T-Bills do not make interest payments, however.
Instead, they are purchased at a discount to face value.
They are the only Treasury securities that sell at a
discount.
Use Treasury Bills to:
- Diversify your investment portfolio
- Participate in a secure, short-term investment
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U.S. Treasury Notes
Treasury notes (T-Notes) earn and pay a fixed rate of
interest every six months until maturity. Fixed-principal
notes are issued in terms of 2, 3, 5, and 10 years.
You can buy Treasury notes directly from the U.S. Treasury
or through a bank or broker.
Use Treasury Notes to:
- Finance education
- Supplement retirement income
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Treasury Bonds
The Treasury Department stopped issuing fixed-principal
Treasury bonds, sometimes called T-Bonds, in October
2001. Nonetheless, many are still unredeemed and earning
interest, with a significant number of years remaining
until maturity.
Treasury bonds earn and pay a fixed
rate of interest every six months until they mature.
Bonds are a long-term investment, maturing in up to
30 years.
Use Treasury Bonds to:
- Diversify your investment portfolio
- Finance education
- Supplement retirement income
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Contact a LPL Investment Consultant to go over your options for
treasury prodcuts.
Financial Advisors of LPL Financial are Registered Representatives with, and Securities, Advisory Services and Insurance Products are offered through LPL Financial and its affiliates, Member FINRA/SIPC. LPL Financial is not a registered broker/dealer. Investments are: Not FDIC insured, may lose value, are not bank guaranteed, and are not obligations of LPL Financial. LPL Branch Office located at 1311 Carolina Ave, Washington, North Carolina 27889. Investment Advisory Services offered through LPL Financial, a SEC Registered Investment Advisor
FINRA (www.FINRA.org ) SIPC (www.sipc.org)
This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

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