Bond Resources and Information

Bond Yields

Treasury and Savings Bond Yields
Type Yield Institution
Series I Bonds 0.74% US Treasury
3-Month Treasury 0.01% Various brokerages
6-Month Treasury 0.07% Various brokerages
2-Year Treasury 0.19% Various brokerages
5-Year Treasury 0.96% Various brokerages
10-Year Treasury 2.26% Various brokerages
30-Year Treasury 3.74% Various brokerages
National Municipal Bond Yields
Type Yield 28% Eq
Yield
2-Year 0.31% 0.43%
5-Year 0.92% 1.29%
7-Year 1.60% 2.21%
10-Year 2.29% 3.18%
15-year 3.05% 4.23%
20-Year 3.51% 4.88%
30-Year 3.85% 5.25%

Bonds (also known as fixed income) are some of the most widely used investment vehicles in the world.

The international bond market was estimated at $46 trillion in 2006 and the US bond market was estimated at $25.2 trillion. By comparison, the value of the world stock markets as of October 2006 was estimated at $36.6 trillion. Analysis of returns have shown that over long periods of time, bonds tend to outpeform stocks.

Bonds are a form of debt, similar to an I.O.U. In return for providing a company or a government with a loan, investors receive a promise for a certain rate of return over the term of the loan as well as repayment of the loan when the term ends or it "comes due".

Bonds come in many different shapes and forms and a bond portfolio may include several different types and maturities depending on the objective of the bond holder. Among those bonds that US nationals and US residents are most like to consider are.

US Treasuries

Among the safest bonds are U.S. Treasury bills, notes, and bonds. These securities are debt obligations of the U.S. government, the largest debt issuer in the world. Since these debt obligations are backed by the “full faith and credit” of the US government, and thus by its ability to raise tax revenues and print currency, US Treasuries are viewed in the market as having no “credit risk,” meaning that it is virtually certain your interest and principal will be paid on time.

Treasury bills mature in one-year or less. Treasury notes mature between 2-10 years while treasury bonds, also known as long bonds, mature between 20-30 years.

Other Bond Resources