When financial markets become uncertain, one asset consistently attracts attention: U.S. Treasuries. These government-backed securities are widely regarded as some of the safest investments in the world and play a central role in both individual portfolios and global markets.

What Are U.S. Treasuries?

U.S. Treasuries are debt obligations issued by the U.S. Department of the Treasury to fund government operations. Because they are backed by the U.S. government, they are considered to carry lower credit risk.

Treasuries are issued in several forms:

  • Treasury Bills (T-Bills): Mature in one year or less. Sold at a discount and redeemed at face value.
  • Treasury Notes (T-Notes): Have maturities of 2 to 10 years and pay interest every six months.
  • Treasury Bonds (T-Bonds): Long-term securities with maturities up to 30 years.
  • Treasury Inflation-Protected Securities (TIPS): Adjust their principal value in line with inflation.

Why Treasuries Matter

Global Benchmark
Treasuries are used as a reference point for interest rates worldwide.

Market Liquidity
They are among the most actively traded securities, ensuring ease of buying and selling.

Portfolio Role
Many investors, institutions, and governments hold Treasuries to balance other types of financial assets.

Macroeconomic Impact
Treasury yields influence borrowing costs for mortgages, corporate debt, and even international markets.

A High-Profile Example

As of 2025, Berkshire Hathaway led by Warren Buffett holds over $300 billion in U.S. Treasury bills. This position highlights how Treasuries can be used not only by governments and central banks but also by major corporations to manage liquidity and stability.

Key Takeaway

U.S. Treasuries may not always be in the spotlight, but they remain one of the cornerstones of global finance. By offering security, liquidity, and a reliable benchmark for interest rates, Treasuries continue to play a vital role in both individual investment strategies and the broader economy.

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