Including in U.S. Treasury instruments are Treasury Bills, Treasury Notes and Treasury Bonds. They are the debentures generated by the US Department of Treasury. So what is the difference?

Treasury Bills . Matures less than a year. Non-callable and not pay the interest coupon so that not pay the interest coupon until sold at a discount price (lower than the nominal value). To have a maturity date: 91,182 and 364 days or the same as 3,6, and 12 months.

Treasury Notes (T-Notes).

Matures more than a year and less than 10 years. It is a non-callable instrument and pays an interest coupon. Has a maturity date: 2,4 and 10 years.

Treasury Bonds Matures more than 10 years. Right now US Treasury issued T-Bonds with the time period until 30 years and only non-callable. T-Bond issued before November 1984 and still callable bonds.

Since January 1997, U.S. Treasury starts issuing TIPS (Treasury Inflation Protection Securities) that are the instruments of T-Notes and T-Bonds giving the interest rate adjusting to the change of inflation rate.

(ps-tr)

(L)