treasury bond

A Treasury bond is a long-term loan you make to the U.S. government. When you buy a bond, you're essentially lending money to fund government projects and operations. In return, the government promises to pay you interest every six months and to return your principal (the initial amount) after 10 to 30 years. Treasury bonds are considered very safe investments because they are backed by the full faith and credit of the U.S. government. They are used by investors seeking steady income and low risk over a longer period.