Treasury Bond
Treasury Bonds are bonds that are issued by the U.S. Federal Government
- Have a perception for being boring
- However, a small interest rate change can have a huge impact on price (with a long-dated bond)
- Options on treasury bond ETFs can offer an even bigger bang
- Treasury Bonds are issued in multiple durations:
- Treasuries are commonly used to plot the yield curve
- Effectively is an IO from the US government. Is a government debt instrument issued by the US treasury to finance government spending