Basic Concepts and Market Role of U.S. Treasury Securities

U.S. Treasury Securities are government bonds issued by the U.S. Department of the Treasury and are considered one of the safest assets in the world. They are divided into short-term Treasury Bills (T-Bills, less than 1 year), medium-term Treasury Notes (T-Notes, 2-10 years), and long-term Treasury Bonds (T-Bonds, 10 years or more), depending on the maturity. Treasury bonds are not only a core tool for the U.S. government to raise funds but also an important component of global central bank foreign exchange reserves. Its low-risk characteristics make it a 'safe haven' in times of market turbulence, and its yield is regarded as a risk-free rate benchmark, which directly affects the pricing of financial products such as mortgages and corporate bonds.