What is the maturity period of Treasury bonds?

Treasury bonds are long-term debt securities issued by the U.S. Department of the Treasury to help finance government spending. The primary feature of Treasury bonds is their maturity period, which is set at 30 years. This long maturity period allows the government to secure funds over an extended time frame, accommodating various financial needs and investments while providing investors a relatively stable and predictable source of interest income.

The 30-year maturity period is distinctive compared to other types of government securities, such as Treasury bills and Treasury notes, which have shorter maturities. Treasury bills typically mature in a few days to one year, while Treasury notes have maturities ranging from two to ten years. Differentiating these securities by maturity is vital for both government financing strategies and investors' portfolio management, as it impacts interest rate risk and investment strategies.

The choice indicating a maturity of 30 years accurately reflects the structure of Treasury bonds and aligns with standard investment terminology and practice regarding U.S. government securities.