A Treasury Bond is a long-term debt security issued by the U.S. government to finance its spending. They are considered very safe investments.
In Depth
Treasury Bonds, often called T-Bonds, are a type of government bond with a maturity period of 20 to 30 years. When you buy a T-Bond, you are essentially lending money to the U.S. government. In return, the government pays you a fixed interest rate every six months until the bond matures, at which point you get your original investment back. Because they are backed by the full faith and credit of the U.S. government, they are considered one of the safest investments available, though their returns are typically lower than riskier assets.
Example
An investor looking for a secure, long-term income stream might purchase a Treasury Bond.