Definition
A Treasury note (T-note) is a medium-term U.S. government security, typically with maturities from about 2 to 10 years, that pays coupon interest periodically and returns principal at maturity.
Why It Matters
T-notes are key benchmarks for medium-term interest rates, affecting mortgages, corporate borrowing, and investment valuations.
Example
A 10-year Treasury note pays interest twice a year and returns principal at maturity.