What is a Treasury Market?
How Does a Treasury Market Work?
The U.S. Department of the Treasury has created a website, TreasuryDirect (click here for our guide on how to use TreasuryDirect, and here to visit the site) where it sells its debt instruments via a Dutch auction.
In 2009, the Treasury conducted 280 auctions, raising approximately $8.6 trillion.
Why Does a Treasury Market Matter?
The market for U.S. Treasury instruments is a very important factor in determining market conditions. These instruments are seen as virtually risk-free, since investors assume a United States debt default is highly unlikely. The interest rates on Treasury debt sets the baseline risk-free rate that almost all other interest rates (corporate bond yields, mortgage rates, credit card rates, etc.) is built on. Both the global debt market and the global stock market watch the Treasury market very closely.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Buying life insurance is daunting enough. No one wants to think about when they'll die and how their loved ones will continue without them -- financially and otherwise. ...Read More →
Homeowners across the country are getting squeezed by their homeowners insurance premiums. That's because in an attempt to stop their financial bloodletting, home insurance companies are looking...Read More →
Question: "I've heard a lot of reminders since the beginning of the year to check up on my 401(k) and other retirement plans and rebalance them if they're not diversified...Read More →