Treasury Security
Debt issued by the U.S. federal government through the Treasury Department — the benchmark risk-free asset in global finance.
Treasury securities are bonds issued by the U.S. Department of the Treasury to fund government operations. Because they are backed by the full faith and credit of the U.S. government, they are considered the safest possible dollar-denominated asset and serve as the benchmark risk-free rate for all other pricing.
They come in three maturities: T-Bills (≤52 weeks), T-Notes (2–10 years), and T-Bonds (20–30 years). Yields on these instruments are the foundation of global financial pricing — mortgage rates, corporate spreads, equity discount rates, and emerging market risk premiums are all quoted as spreads over Treasuries.
When risk assets sell off, money often flows into Treasuries (flight to safety), driving yields lower and prices higher.