What is Treasury Bond (T-Bond)?

A treasury bond (T-Bond) is a security that the U.S. government typically issues as a debt instrument to fund various government operations and commitments. These securities typically have maturities of more than 20-30 years, and pay a fixed return every six months. Generally speaking, the longer the maturity period of a T-bond, the higher its annual yield. Once a T-bond has been sold by the government in an initial auction, it can be freely traded on secondary markets.