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US Treasury securities are debt obligations (bonds) sold by the US government to raise money for its operations. Buying US Treasury securities means that one is loaning money to the government. In return for buying US treasury securities, investors receive a stated interest rate. Most such interest rates are fixed; some are variable. US Treasury securities are considered the safest of investments because they are backed by the “full faith and credit” of the US government; this means that the investor’s interest and principal are guaranteed to be paid by the US government. Such a guarantee, however, means that US Treasury securities pay low interest rates. Savings bonds, government agency bonds, and Treasury bonds are examples of US Treasury securities. |
