When you buy a Treasury note, a medium-term debt security issued by the U.S. Department of the Treasury with a maturity between 2 and 10 years. Also known as T-notes, it's one of the most reliable ways to earn interest without taking big risks. Unlike stocks, Treasury notes don’t swing with the market—they pay a fixed rate every six months until they mature. If you’re looking for something that doesn’t vanish when the market drops, this is it.
Treasury notes are part of a bigger family called Treasury securities, the full range of U.S. government debt instruments including bills, notes, and bonds. Also known as T-securities, they’re backed by the full faith and credit of the United States. That means even in a crash, the government still pays you. Treasury bills (T-bills) are short-term—under a year. Treasury bonds (T-bonds) last 20 or 30 years. Notes sit right in the middle. If you want steady income without locking money away for decades, notes are the sweet spot.
Interest rates move everything. When the Federal Reserve raises rates, new Treasury notes pay more. But if you already own one with a lower rate, its market value drops. That’s why people buy them to hold until maturity—not to trade. They’re not for guessing where rates are headed. They’re for knowing exactly what you’ll get back. In 2024, 10-year notes paid over 4.5%. That’s more than most savings accounts and way safer than corporate bonds.
They’re also used to balance risk. If your portfolio is all stocks, adding Treasury notes cuts the rollercoaster. When stocks fall, people rush to notes. That drives prices up and gives you a buffer. Even better, you can buy them directly from the government for free through TreasuryDirect. No broker fees. No markups. Just your money and the U.S. government’s promise.
They’re not flashy. You won’t hear about them on CNBC when the market surges. But when things get shaky—like in 2008, 2020, or 2022—everyone looks for them. That’s why smart investors keep a chunk of their portfolio in notes. Not as a get-rich scheme. As a sleep-well-at-night tool.
What you’ll find below are real guides on how to use Treasury notes in your strategy—whether you’re just starting out or already holding them. You’ll see how they fit with other assets, how to buy them without paying extra, and why they’re still the quiet backbone of modern investing—even when the headlines scream otherwise.
A clear breakdown of U.S. Treasury bills, notes, and bonds - how they work, how to buy them, and which one fits your financial goals. Learn the differences, yields, risks, and real-world strategies for using these safe government securities.
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