TREASURY OBLIGATIONS Meaning and
Definition
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Treasury obligations, also known as Treasury securities or government bonds, refer to debt securities issued by the U.S. Department of the Treasury to finance the national debt and fund government spending. They are considered safe and secure investments backed by the full faith and credit of the U.S. government.
Treasury obligations come in different forms, including Treasury bills (T-bills), Treasury notes (T-notes), and Treasury bonds (T-bonds). T-bills have short-term maturities of one year or less, while T-notes have intermediate-term maturities ranging from two to ten years. T-bonds, on the other hand, have long-term maturities of ten to thirty years. All of these Treasury securities enable the government to raise funds from investors, both domestic and foreign.
Investors who purchase Treasury obligations lend money to the government in exchange for regular interest payments and the repayment of the principal amount upon maturity. These securities are considered low-risk investments due to the government's ability to tax and adjust the money supply, minimizing the risk of default. As a result, Treasury obligations are widely regarded as a benchmark for other fixed-income investments, and their yields often influence interest rates for other financial instruments.
Treasury obligations are actively traded in the financial markets and are considered highly liquid due to their safety and frequent issuance by the Treasury Department. They provide investors with a reliable income stream and are often sought after as a havens during times of market uncertainty.
Common Misspellings for TREASURY OBLIGATIONS
- rreasury obligations
- freasury obligations
- greasury obligations
- yreasury obligations
- 6reasury obligations
- 5reasury obligations
- teeasury obligations
- tdeasury obligations
- tfeasury obligations
- tteasury obligations
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- trwasury obligations
- trsasury obligations
- trdasury obligations
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- tr4asury obligations
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- trezsury obligations
Etymology of TREASURY OBLIGATIONS
The word "treasury" comes from the Middle English word "tresor" or "tresorie", which originated from the Old French word "tresor" meaning "treasure". It ultimately traces back to the Latin word "thesaurus", meaning "treasure" or "hoard".
The word "obligation" comes from the Latin word "obligatio", which is derived from the verb "obligare" meaning "to bind". In this context, it refers to a legally binding agreement or commitment to pay a debt.
Therefore, the term "treasury obligations" refers to debts or financial commitments undertaken by a treasury or government department.
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