What is the difference between a Treasury Bill, a Treasury Note, and a Treasury Bond?
T-bills are short-term government debt instruments with maturities of 3, 6, or 12 months. T-notes are longer-term government debt instruments with maturities from one to 10 years. T-bonds are government debt instruments with maturities over 10 years. 14. Treasury-only funds invest in derivatives, right? That makes them risky. No. They do invest in repurchase agreements or “repos” (very short-term loans that are at least 100% collateralized by Treasury securities). And, technically speaking, repos are classified as “derivatives.” But that doesn’t make them risky. Quite to the contrary, the repos bought by Treasury-only funds are in the same safety category as Treasury bills themselves.
