Treasury Note

Treasury note means U.S. government debt with a medium-term maturity, usually from 2 years to 10 years. In simple terms, a Treasury note is money investors lend to the U.S. government for several years. Treasury notes are important because their yields influence borrowing costs, mortgage rates, stock valuations, and investor expectations about the economy. The 10-year Treasury note is especially watched by markets. For example, if investors buy many 10-year Treasury notes, their prices may rise and their yields may fall. A Treasury note is not the same as a Treasury bill or Treasury bond. Notes usually have medium-term maturities, bills are short-term, and bonds are longer-term.