Asset Classes

Treasury Bonds
Fixed Income

Treasury Bonds are bonds that are issued by the U.S. Federal Government

More About Treasury Bond

  • Have a perception for being boring
    • However, a small interest rate change can have a huge impact on price (with a long-dated bond)
    • Options on treasury bond ETFs can offer an even bigger bang
  • Treasury Bonds are issued in multiple durations:
    • 3 Mnoth
    • 2 Year
    • 3 Year
    • 5 Year
    • 10 Year
      • Historically Have paid roughly 4.8%
    • 30 Year
    • etc.
  • Treasuries are commonly used to plot the yield curve
    • Largest and most liquid market
    • All bonds have the same issuer & thus credit quality

  • Effectively is an IO from the US government. Is a government debt instrument issued by the US treasury to finance government spending