What is the definition of Treasury Securities?

Treasury Securities are debt obligations of the government. These include Treasury bills, bonds, and notes that are interest bearing and are issued as the government's way of raising money to fund government projects and expenditures. These expenditures are usually not covered by tax revenues.

Treasury securities are among the safest investment options, as it is the government itself that guarantees it. Hence, these are sometimes dubbed default-fee securities. These are also usually exempt from local and state taxes.

However, it is important to note that while these are risk-free, treasury securities may cause you to lose money because of shifts and changes in the exchange rate, as well as the time-value of money (especially when there is an investment instrument that offers a more attractive yield).

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