Bonds issued by the United States federal government. When the federal government needs to borrow money—and it needs to borrow money all the time—it issues Treasuries, which are backed by the full faith and credit of the United States (and not subject to state income tax; you still have to pay federal tax on the income, though). There are several types of Treasuries: T-bills (maturities of one year or shorter), notes (maturities of two to ten years), bonds (maturities of ten to thirty years). Note: people tend to refer to all three of these types as “bonds,” but know that there is a difference based on duration.
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