U.S. Treasury Bonds are a marketable U.S. government debt security with a fixed interest rate. Treasury Notes have a maturity between one and 10 years. Treasury Bonds have maturities between 10 and 30 years. Treasuries can be bought either directly from the U.S. government or through a bank. Principal return and interest payments are backed by the full faith and credit of the United States Federal Government.
Treasuries offer the ultimate in principal and interest security. Due to the large secondary trading market in treasuries, they offer excellent liquidity. Interest payments on the notes are made every six months until maturity. The income for interest payments is not taxable on a municipal or state level but is federally taxed.
Treasuries may be a suitable investment alternative for the investor who seeks stable income yield, near-riskless principle security, and excellent liquidity. Please contact your APS Financial representative for a current list of Treasury offerings.