7630 / What are Treasury bonds and Treasury notes?

Treasury bonds and notes are obligations of the federal government. They are essentially similar, except that bonds mature in more than 10 years while Treasury notes have maturity dates ranging from one to 10 years. (Thirty-year bonds are auctioned quarterly in February, May, August, and November, with re-openings in the other eight months.) These obligations are issued in denominations ranging from $100 to $5,000,000. Bonds issued after September 3, 1982, and notes issued after 1982 must be in registered form (see Q 7698); however, bearer bonds and notes issued before the registration requirement date may continue to be bought and sold in bearer form. Bearer notes and bonds have coupons attached that are cut off and redeemed, generally through a commercial bank or the Federal Reserve Bank (or a branch). In the case of registered obligations, interest payments are paid to the registered owner by the Treasury Department. Interest is generally payable on these obligations every six months. They are redeemable at maturity for face value.