What is US Treasury? Don't understand it

Issuing time:2020-01-06 00:00

Government bonds in the United States are actually issued by the US government. The most common financial products purchased by investors are stocks, bonds and funds. Since the issuance of U.S. bonds, the U.S. government has faithfully and rigorously fulfilled its duty to pay monthly interest and repay principal at maturity. And this type of U.S. bonds has extremely high credit globally. In the area of investment, it is the most stable, reliable, and profitable product that can be resold to each other.


As we all know, government bonds are generally issued by the financial departments of governments of various countries, and there are various ways to issue them. Some are certificate-type government bonds and some are physical certificate-type government bonds. For example, in China, stamps and various commemorative coins are often seen on television. Different countries have different cultures, so their national bonds are different. But in general, the purpose of US Treasury bonds is basically the same as that of other countries. US Treasuries are those issued by the US Treasury on behalf of the federal government. There are only three methods for issuing national debt, namely, voucher type, physical voucher type and bookkeeping type. There are three types of short-term government bonds, medium-term government bonds, and long-term government bonds, depending on the time of repayment.


Treasuries are always considered safe and secure, so most people choose to buy them. In the investment world, its yield is still relatively high, the most stable and reliable, and it can be resold to each other. Under certain special economic conditions, US Treasury bonds are a very good investment. For example, the recent slowdown in global economic growth and the decline in future growth momentum, because the risk of U.S. Treasury bonds is zero, and investors (especially some funds that quantify risk control) are transferring funds to U.S. Treasury bonds, although a sharp increase in demand will push up prices It allows investors to obtain certain capital gains, but their yields will decline accordingly, so it is also a negative cycle mechanism: low yields will also push investors to high-risk assets, such as corporate bonds or stocks.


Finally, the above is my answer to US Treasury bonds. Generally speaking, US Treasury bonds are still worth buying, but any investment will have certain risks. So I hope everyone can buy them carefully.

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