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What Are Treasury Securities?

April 26, 2017securities Treasury treasury bills treasury notes treasury securities treasury security

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What Are Treasury Securities?

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The U.S. government issues treasury securities as a means for covering the costs of government debts. By investing in treasury securities, investors are effectively loaning money to the government for a pre-determined amount of time, depending on what type of treasury security is purchased. When that time is up, the government repays the investor the full principal amount plus the interest earned. The interest is at a fixed rate that is set before the treasury security is initially sold.