Question

What are the volatility of T-Bills, T-notes and T-bonds?

Answer 1

Treasury bonds, treasury bills and treasury notes are all government issued fixed income securities that are safe and secure. There is very less volatility. Investors can expect a high degree of safety and a steady, but unspectacular profit from each of these securities. Upon maturity, these bonds, notes, and bills return their face value.

T-bonds mature in 30 days and offer investors the highest interest payments bi-annually.

T-notes mature anywhere between 2-10 years, with bi-annual interests payments but lower yields.

T-bills have the shortest maturity terms- from four weeks to a year.