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30-year Treasury Bonds
Treasury Bonds with a maturity of 30-years are auctioned every six months. Once the mainstay of pensions and conservative investors and the bellwether of Treasuries, the 30-year bond was replaced by the 10-year treasury as the benchmark used by investors. Although pensions still look to these bonds, projecting the health of the economy (hence the return on this investment less the impact of inflation) is incredibly difficult over such a long time frame. Many now prefer the shorter 10-year issue.

The re-introduction of the bond in 2006 offers investors a long term view of the American economy while it attempts to promote investor confidence.

Traditionally, these bonds have offered a way to diversify an investment portfolio, help finance education expenses, and give retirees a steady income.


    Minimum Purchase:
    $1,000

    Investment Increment:
    Multiples of $1,000

    Issue Method:
    Electronic


The Rates and Terms
  • Treasury Bonds rates are determined at auction and the price depends on not only its yield to maturity but the interest rate. According to Treasury Direct, should the yield to maturity be greater than the interest rate, the price of the bond will be less than par value. If the price is greater than par, the interest rate will be greater than the yield to maturity. And should both the interest rate and the yield to maturity be the same, the price will be equal to par value.

    This is perhaps best illustrated in the following table. (To find today's rates, click here
    Condition Type of Security Yield at Auction Interest Coupon Rate Price Explanation
    Discount (price below par) 30-year Bond
    Issue Date: 8/15/2005
    4.35% 4.25% 98.333317 Below par price required to equate to 4.35% yield
    Premium (price above par) 30-year Bond reopening*
    Issue Date: 9/15/2005
    3.99% 4.25% 104.511963 Above par price required to equate to 3.99% yield



You can buy EE Bonds here. If you have additional questions about these investments, you can find the answers here
If you have additional questions about these investments, you can find the answers here

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