Home/Financial Basics/Savings & Cash
Financial Basics · Savings & Cash

Treasury Bonds

Treasury securities are debt obligations of the US federal government. T-bills mature in 1 year or less, T-notes in 2–10 years, T-bonds in 20–30 years, and TIPS (Treasury Inflation-Protected Securities) adjust principal with inflation. I-bonds are savings bonds with an inflation-linked component.

By the TRRP Editorial TeamUpdated 2026SSA · IRS · CMS data

Definition

Treasury securities are debt obligations of the US federal government. T-bills mature in 1 year or less, T-notes in 2–10 years, T-bonds in 20–30 years, and TIPS (Treasury Inflation-Protected Securities) adjust principal with inflation. I-bonds are savings bonds with an inflation-linked component.

Why it matters in retirement

Treasuries are the closest thing to a risk-free asset in investing — backed by the full faith and credit of the US government. They're also exempt from state and local income tax, which makes them more valuable in high-tax states than most retirees realize.

Key numbers · 2026
4-week T-bill (recent)
~4.4%
10-year T-note
~4.3%
TIPS 10-year real yield
~1.8%
I-bond annual purchase limit
$10,000 + $5K via refund
Pros
  • Virtually zero credit risk
  • State/local tax exempt
  • Highly liquid
  • Direct purchase via TreasuryDirect
Cons
  • Interest-rate risk on long durations
  • Below-inflation real returns at times
  • I-bond purchase limits and 12-month lockup
  • Federal tax on interest

Common mistakes

  • Buying long-duration Treasuries in a rising-rate environment
  • Ignoring T-bills when they out-yield CDs
  • Not holding TIPS in tax-advantaged accounts (phantom income)
  • Selling Treasuries before maturity in a downturn
The part most people miss

TIPS and I-bonds both protect against inflation — but I-bonds are better for small savers and TIPS are better for larger portfolios. I-bonds have purchase limits; TIPS don't, but should live in IRAs to avoid phantom income tax.

When you’re ready

Want help applying treasury bonds to your situation?

Start with the free Retirement Readiness Score to see where you stand, then talk to a fiduciary if you want a second set of eyes. No pitch, no pressure.

Take the free assessment