Treasuries

The treasuries market includes government debt instruments including gilts, bunds, bonds, and treasury notes. With Guard Financial Services, you can invest in treasury contracts. You can trade treasuries in global markets including the US, Canada, Asia, and Europe

What are bonds?

Bonds are financial instruments issued by governments and corporations to raise money. They are debt instruments and are considered to be safer than equities.

What induces volatility in bond prices?

If bond prices rise there could be a slowdown of general economic activity, while fall in prices could result in rising of interest rates. If we have huge potential on corporate debts, then bonds become more attractive for security.

Trading Treasury Securities

When you purchase a treasury security for a set time period, the government owes you money.
You are eligible to receive ongoing interest from the value of the loan, even though the face value of the bond remains unchanged. Moreover, it is not mandatory to hold the bonds until the maturity.
Further, you can speculate on the likely future value of the bond. There are several factors that can influence the bond value, including geopolitical developments in the economy of that country, the monetary policies affecting the risk of inflation, or the value of its currency.

Choosing Treasury Securities

You can place investments on government treasury securities across:

Bund

Bobl

T-Bond

T-Note

Euribor

Euro OAT

UK Gilt

3 Key Categories

Treasury Bills

A Treasury Bill (or T-Bill) is a short-term debt obligation backed by the U.S. Treasury Department with a maturity of one year or less. Treasury bills are typically sold in denominations in $1,000-$5 million range.

The longer the maturity date, the higher is the interest rate that the Treasury Bill will pay to the investor.

Treasury Notes

A Treasury note (or T-note) is a marketable government debt security with a fixed interest rate and a maturity of 2-10 years.

The Treasury auctions 2-year notes, 3-year notes, 5-year notes, and 7-year notes on a monthly basis. The agency issues 10-year notes in February, May, August, and November, and as re-openings in the remaining eight months. Treasury notes, pay interest semi-annually, and are issued at a $100 par value and mature at the same price.

Treasury Bond

Treasury bonds (T-bonds) are fixed-rate U.S. Federal government debt securities with a maturity of 20-30 years. T-bonds pay interest semi-annually till maturity, at which point, the owner receives the face value of the bond.

Treasury bonds earn periodic interest till maturity, at which point, the owner receives an amount equal to the principal. It must be noted that, yield is referred as the interest rate paid by the bond.

Steps to making your first investment

Define your financial goals: Start by determining your investment objectives and the purpose of your investment.
Assess your risk tolerance: Understand your risk tolerance, which refers to your comfort level with the potential ups and downs of the investment market.
Meet with a financial consultant: to discuss your financial goals, risk tolerance, and investment preferences.
Open an investment account: Complete the necessary paperwork to open an investment account. Provide the required identification documents and fill out any application forms.
Fund your investment account: Transfer funds from your bank account to your investment account.
Monitor your investments: Regularly review your investment portfolio and monitor its performance.
Stay disciplined: Stick to your investment strategy and maintain a diversified portfolio.

Top Investment Assets

Vanguard S&P 500 ETF | VOO

Objective: 500 Index Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks.