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T Bonds - Trading and Yield
Treasury Bonds are long term Government securities. Their maturities are over 10 years out to 30 years and are often used in block trading. They are backed by the US Government, thus they carry no credit risk. Their yields reflect interest rates and supply and demand.
T Notes pay interest every 6 months and they are priced in 32nds. Many loans are piced off of the various maturities of these bonds.
These securities are auctioned semi annually or longer and bidded on by US Government securities dealers.
Yield
The yield on treasury bonds reflect the supply and demand of debt and interest rates long term. Since they are AAA quality, they will yield less than private debt securities or Government Agency Bonds. Yields will fluctuate as part of the yield curve that other securities and loans are priced off of.
Trading
T Bonds are actively traded in a global market. The brokers who engage in the trading of these securities will normally trade them in large blocks, as the spreads can be thin for smaller amounts.
Bond Yield Blog
Copyright  2006 American Investment Training, Inc.
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