Finding Treasuries on the Web

After you decide to buy Treasuries, your research is far from
over. The U.S. government offers you lots of choices. You can
select from the following:

U.S. bonds, notes, and bills are called Treasuries because
they’re sold by the Treasury Department through its subagency,
the Bureau of Public Debt.

n Treasury bills (T-bills): T-bills are short-term bonds
with maturities of 13 weeks, 26 weeks, and 52 weeks.
The Treasury periodically holds an auction in which it
posts notices of new issues and makes them available to
the public on the Web. The 52-week T-bills pay interest
semiannually, and the 13- and 26-week varieties pay
interest when they mature. T-bills come in minimum
denominations of $1,000.

n Treasury zero coupon bonds: These bonds earn interest
to reach their stated face value upon maturity. For
example, you may purchase a $10,000 bond for $5,000.
They’re a favorite for college savings. Because these bonds
don’t pay interest until you cash them in, you don’t have
to report the interest as income before you redeem them.

n Treasury notes: This type of bond has a maturity date
of two years, five years, or ten years. You’re paid interest
semi-annually and have to invest at least $1,000.

n Treasury bonds: This type of bond represents the government’s
longest-term bonds, having a 30-year maturity
date. The Treasury sells them three times a year in
multiples of $1,000. They pay interest semiannually.

n Inflation-indexed notes: These bonds are the new kids
on the auction block — they were first introduced in
January 1997. They pay a fixed rate of interest plus an
extra amount to reflect the current inflation rate. The
inflation adjustment is based on the consumer price
index. These notes pay interest semiannually, have a tenyear
maturity date, and are auctioned every three
months.