Understanding Treasury Marketable Securities
Treasury marketable securities consist of three primary instruments that investors often compare as treasury bill vs treasury note vs treasury bond: Treasury bills, notes, and bonds, along with variants such as TIPS and FRNs. All are backed by the full faith and credit of the U.S. government and sold exclusively through public auctions.
Since 1986 these securities have been issued only in book-entry form. The minimum purchase amount stands at $100, available in increments of $100. Bills carry maturities of one year or less and are issued at a discount. Notes span one to ten years with semiannual coupon payments. Bonds extend beyond ten years, typically twenty or thirty years, and likewise pay semiannual coupons.
This framework supports both short-term cash management and long-term debt issuance under consistent auction procedures.
Treasury Bills: Short-Term Discount Instruments
Treasury bills mature in 4, 6, 8, 13, 17, 26, or 52 weeks. These fixed short terms allow the Treasury to raise funds for immediate needs while giving investors predictable, brief holding periods.
Most bills are auctioned weekly. The 52-week bills follow a four-week cycle instead. This regular cadence lets the Treasury respond quickly to cash-flow gaps without waiting for longer-term debt cycles.
Bills sell at a discount to face value and return the full face amount at maturity. No semiannual coupons are paid. The difference between purchase price and face value supplies the investor’s return, which is known in advance for non-competitive bidders.
Because of their short maturities and flexible auction schedule, bills act as the government’s primary shock absorber for short-term borrowing. When revenue or spending timing shifts, the Treasury can issue or roll over bills to smooth cash needs while leaving note and bond programs unchanged.
Participation begins at a $100 minimum in $100 increments through TreasuryDirect. Non-competitive bids from individuals are capped at $10 million or 35 percent of the offering, whichever is lower. All bills remain in book-entry form, with settlement occurring the next business day after the auction.
Treasury Notes and Bonds: Coupon-Paying Securities
Treasury notes carry maturities of 2, 3, 5, 7, or 10 years while bonds extend to 20 or 30 years. Both pay interest every six months through fixed semiannual coupons calculated on the face value. Investors receive these payments directly into their accounts until maturity, when the principal is repaid in full.
This structure contrasts with bills, which issue at a discount and return only face value at maturity without any interim cash flows. Notes and bonds therefore generate steady income, making them suitable for longer-term portfolios where investors seek predictable returns rather than short-term liquidity.
Issuance occurs through regular auctions with reopenings that maintain benchmark sizes, such as the $42 billion 10-year note and $25 billion 30-year bond offered in the August 2026 quarterly refunding. Minimum purchases start at $100 in $100 increments, and the securities trade actively in the secondary market, allowing holders to adjust positions before final maturity without waiting for redemption.
Auction Schedules and 2026 Issuance Figures
In 2024 the Treasury held 440 public auctions and issued about $28.5 trillion in marketable securities. Bills follow a weekly schedule, with 52-week bills offered every four weeks, while notes and bonds use monthly or quarterly cycles that include reopenings of existing issues.
Non-competitive bids, available to individuals through TreasuryDirect, are capped at $10 million or 35 percent of the offering amount, whichever is lower. Competitive bids come mainly from institutions and determine the high rate or yield.
The August 2026 quarterly refunding announcement set an offering of $125 billion across three securities to refund roughly $96.3 billion in maturing debt and raise about $28.7 billion in new cash. The components were a $58 billion 3-year note due August 15, 2029, a $42 billion 10-year note due August 15, 2036, and a $25 billion 30-year bond due August 15, 2056.
Anticipated sizes for the August–October 2026 quarter included $69 billion 2-year notes, $58 billion 3-year notes, $70 billion 5-year notes, $44 billion 7-year notes, $39–42 billion 10-year notes, $13–16 billion 20-year bonds, $22–25 billion 30-year bonds, and $28–30 billion floating rate notes. These regular patterns support predictable cash management and secondary-market liquidity.
Key Differences in a Comparison Table
| Feature | Treasury Bills | Treasury Notes | Treasury Bonds |
|---|---|---|---|
| Maturity ranges | 4 to 52 weeks | 2 to 10 years | 20 or 30 years |
| Interest payment method | Issued at discount; face value repaid at maturity, no coupons | Semiannual coupon payments | Semiannual coupon payments |
| Auction frequency | Weekly (52-week bills every four weeks) | Monthly or quarterly with reopenings | Monthly or quarterly with reopenings |
| Typical investor use | Short-term cash management and liquidity needs | Intermediate-term income and portfolio balancing | Long-term income and duration matching |
| Recent offering sizes (August 2026 quarterly refunding) | Not specified in the August announcement | $58 billion 3-year; $42 billion 10-year | $25 billion 30-year |
All three instruments require a $100 minimum purchase in $100 increments and settle in book-entry form. Bills function as the Treasury’s short-term shock absorber while notes and bonds follow predictable quarterly schedules. The August 2026 refunding raised roughly $28.7 billion in net new cash across the three maturities shown.
FAQ
What is the minimum purchase amount for Treasury bills, notes, and bonds?
All Treasury marketable securities can be bought in increments of $100 with a $100 minimum. Non-competitive bids placed through TreasuryDirect are limited to $10 million or 35 percent of the offering, whichever is lower.
How do I buy Treasury securities directly?
Individuals use TreasuryDirect to submit non-competitive bids that accept the auction-determined rate or yield. The securities are issued in book-entry form only.
What happens when a Treasury bill, note, or bond matures?
Bills return face value at maturity with no further payments. Notes and bonds pay the final semiannual coupon plus principal on the maturity date.
How liquid are these securities in the secondary market?
Bills trade actively for short-term needs and serve as a liquidity tool. Notes and bonds also have deep secondary markets, though trading volume tends to concentrate in the most recently issued benchmarks.
How sensitive are prices to interest-rate changes?
Shorter-maturity bills show minimal price movement when rates shift. Notes and bonds with 10- to 30-year terms experience larger price swings because their longer durations make them more sensitive to yield changes.
Can I sell before maturity?
Yes. All three instruments can be sold on the secondary market at any time before maturity, though the realized price will reflect current yields and may result in a gain or loss relative to the original purchase price.