Are Treasury Notes a good investment?

Answer 1

G'day DD,

Thank you for your question.

Treasury notes are very secure. However, their rate of return is not as high as other investments.

Treasury notes (or T-Notes) mature in two to ten years. They have a coupon payment every six months, and are commonly issued with maturities dates of 2, 3, 5 or 10 years, for denominations from $1,000 to $1,000,000. T-Notes and T-Bonds are quoted on the secondary market at percentage of par in thirty-seconds of a point. Thus, for example, a quote of 95:07 on a note indicates that it is trading at a discount: $952.19 (i.e. 95 7/32 %) for a $1,000 bond. (Several different notations may be used for bond price quotes. The example of 95 and 7/32 points may be written as 95:07, or 95-07, or 95'07, or decimalized as 95.21875.)

The 10-year Treasury note has become the security most frequently quoted when discussing the performance of the U.S. government-bond market and is used to convey the market's take on longer-term macroeconomic expectations. It is also important to the U.S. mortgage market, which uses the yield on the 10-year Treasury note as a benchmark for setting mortgage interest rates.

They are best for investors seeking security or as part of a portfolio to balance other riskier investments.

I have attached sources for your reference

Regards.

Answer 2

Long term, no, not for most investors.

They provide no protection against inflation.

For the average, working individual, the 'safest' choice would be TIPS in the US (which are treasury bonds that have a payout based on inflation).

Safest may not be best in the long term, but I don't think many people are better off holding T-notes vs. TIPS.

Edit: if you can describe how old you (or the saver) are, and when you are saving the money for, could give a much better - though still simple - suggestion.

Answer 3

I believe that I-bonds are the best investment of this kind. Their interest is adjusted every 6 months. You can buy up to $30,000 per year. You can research all kinds of bonds on line at www.savingsbonds.gov

Answer 4

Nobles the only marvelous answer so a methods. Farcis link says opposite of what he states so a methods as federal tax and state tax. You tie up your money for 30 years and then get decrease back that comparable quantity in 30 years. you may sell beforehand of that at contemporary quotes in case you get a purchaser yet customarily, you're making money alongside the way in money of two times each and each year at interest fee you acquire in at.

Answer 5

I'm not sure about that but I've been purchasing my son i i & e series savings bonds. They seem to be a good investment and you can easily buy them at any bank with virtually no limits or penalties.

Answer 6

u can not get the good rate of return compair to other alternative of investments

Answer 7

You won't likely earn the highest interest rate, but they tend to be stable and relatively low-risk.