What are Treasuries?

When it comes to building a well-rounded investment portfolio, one cannot overlook the importance of including safe and reliable assets. Treasury securities, issued by the United States Department of the Treasury, are renowned for their low-risk nature and steady income generation. In this article, we will explore the various types of Treasury securities and discuss their uses in a diversified portfolio. 1. Treasury Bills (T-bills) Treasury bills are short-term securities with maturities ranging from a few days to 52 weeks. They are typically issued at a discount to their face value and provide investors with a fixed return upon maturity. T-bills are often considered as risk-free investments due to their backing by the U.S. government. These securities are suitable for investors looking for highly liquid, short-term investments to park their cash and preserve capital. 2. Treasury Notes (T-notes) Treasury notes are medium-term securities with maturities ranging from 2 to 10 years. They pay interest semi-annually and provide investors with a fixed rate of return. T-notes offer a higher yield compared to T-bills and are suitable for investors seeking moderate income and capital preservation over a