Treasury Bond Legal Meaning and Definition

Here is a simplified definition of the legal term Treasury Bond.

Treasury Bond (noun)

A Treasury Bond, often simply referred to as a "T-bond," is a type of government bond issued by the United States Department of the Treasury. These bonds are a way for the government to raise money, and they pay interest to the person who buys them, known as the bondholder.

Unlike other types of bonds, Treasury Bonds have a long term of maturity, usually over ten years. This means that the government pays interest on the money borrowed for a period exceeding ten years before paying back the principal, or original amount borrowed.

T-bonds are considered a safe investment since they are backed by the U.S. government.