Definition
A Treasury bond (T-bond) is a long-term U.S. government security, generally with maturities longer than 10 years, that pays interest (coupons) periodically and returns principal at maturity.
Why It Matters
T-bonds influence long-term interest rates and are important for retirement portfolios, pensions, and pricing other long-term loans.
Example
A 30-year Treasury bond pays coupon interest every six months until it matures.