What is a 10-year Treasury?

A 10-year Treasury is a bond that guarantees interest plus repayment of the borrowed money in a decade. The 10-year Treasury is just one of a handful of securities issued by the U.S. government. Others include: • Treasury bills, also known as T-bills, are short-term securities, with maturities that range from a few days to 52 weeks.

What does a 10 year note mean?

The 10-year note is somewhere in the middle. It indicates how much return investors need to tie up their money for 10 years. If they think the economy will do better in the next decade, they will require a higher yield to keep their money socked away.

When does the Treasury issue new 10-year notes?

Although the Treasury issues new T-notes of shorter maturities every month, new 10-year notes are issued only in February, May, August, and November. In other months, the Treasury sells additional 10-year notes from the most recent issue in what is known as a re-opening.

Is a 10-year Treasury a risk-free investment?

Considered one of the lowest-risk investments on the U.S. market, 10-year Treasurys are a “risk-free” benchmark against which other investments and debt are compared. (Three-month Treasury bills are another.) While no investment is ever completely risk-free, Treasury notes come close if held to maturity.