A Treasury bond is a U.S. Treasury obligation with an original maturity of more than 10 years.
Treasury bonds are marketable federal government debt securities. They generally pay interest twice a year and return their principal value at maturity. Because they are backed by the credit of the U.S. government, they are widely treated as having very low default risk, although their market prices still fluctuate.
Treasury bills mature in one year or less, while Treasury notes generally mature from two to 10 years. Treasury bonds therefore occupy the longest standard maturity category among these three marketable Treasury securities.
A long maturity creates significant interest-rate sensitivity. When market interest rates rise, existing bonds with lower coupon rates generally become less attractive, so their prices can fall. Holding a bond to maturity can reduce price uncertainty, but it does not eliminate inflation or reinvestment risks.