Treasury Bond

Treasury bond means long-term debt issued by the U.S. government. In simple terms, a Treasury bond is money investors lend to the U.S. government for a long period. Treasury bonds are important because they help finance government spending and provide investors with long-term interest payments. Their yields can reflect expectations about inflation, growth, and long-term interest rates. For example, a 30-year Treasury bond pays interest over many years and returns principal at maturity. A Treasury bond is not the same as a corporate bond. Treasury bonds are issued by the U.S. government, while corporate bonds are issued by companies.