Newly issued Treasuries can be purchased at auctions held by the government, while previously issued bonds can be purchased on the secondary market. Both types of orders can be placed through Fidelity.*
| Treasury | Minimum denomination | Sold at | Maturity | Interest payments |
|---|---|---|---|---|
| US Treasury bills | 1 bond ($1,000 face value) | Discount | 4-, 8- , 13-, 17-, 26-, and 52-week | Interest and principal paid at maturity |
| Cash Management Bills | 1 bond ($1,000 face value) | Discount | Variable and not issued on a regular schedule | Interest and principal paid at maturity |
| US Treasury notes | 1 bond ($1,000 face value) | Coupon | 2-, 3-, 5-, 7-, and 10-year | Interest paid semi-annually, principal at maturity |
| US Treasury bonds | 1 bond ($1,000 face value) | Coupon | 20-year 30-year | Interest paid semi-annually, principal at maturity |
| Treasury inflation-protected securities (TIPS) | 1 bond ($1,000 face value) | Coupon | 5-, 10-, and 30-year | Interest paid semi-annually, principal redeemed at the greater of their inflation-adjusted principal amount or the original principal amount |
| US Treasury floating rate notes (FRNs) | 1 bond ($1,000 face value) | Coupon | 2 years | Interest paid quarterly based on discount rates for 13-week treasury bills, principal at maturity |
| Treasury STRIPS | 1 bond ($1,000 face value) | Discount | 6 months to 30 years | Interest and principal paid at maturity |
* As of January 26, 2024
Structure: Coupon or no coupon/discount
Investors in Treasury notes (which have shorter-term maturities, from 1 to 10 years) and Treasury bonds (which have maturities of up to 30 years) receive interest payments, known as coupons, on their investment. The coupon rate is fixed at the time of issuance and is paid every six months.
Other Treasury securities, such as Treasury bills (which have maturities of one year or less) or zero-coupon bonds, do not pay a regular coupon. Instead, they are sold at a discount to their face (or par) value; investors receive the full face value at maturity. These securities are known as Original Issue Discount (OID) bonds, since the difference between the discounted price at issuance and the face value at maturity represents the total interest paid in one lump sum.
