Treasury Notes (T-Notes)
Intermediate-term U.S. government debt securities with maturities of 2, 3, 5, 7, or 10 years, paying semiannual fixed interest.
What is Treasury Notes (T-Notes)?
Auctioned monthly, T-notes have face values starting at $100, with coupons like 4.375% for a 10-year note issued in August 2025 yielding 4.1% at auction. Outstanding volume is $18 trillion in 2025, comprising 60% of marketable Treasuries. Interest is taxable federally but exempt from state taxes.
They trade in secondary markets with yields inversely affecting prices; a 50 bps yield rise drops a 10-year note’s price by about 4%. The 10-year note yield, at 4.2% in October 2025, benchmarks mortgage rates (30-year fixed at 6.5%). During QE, the Fed held $3.5 trillion in notes.
Investors use them for duration matching; pension funds buy 7-year notes yielding 4.0% for liability hedging.
Related Terms
Convertible Preferred Stock
Preferred stock convertible into common shares, blending dividend income with equity conversion potential.
Price-Time Priority
A matching rule where orders are executed first by best price, then by entry time.
Alpha
An advantage in digital asset trading gained through early or exclusive access to information, strategies, or opportunities not yet widely known by market participants.
Flashbots
A research and development organization dedicated to mitigating the negative externalities of Maximal Extractable Value (MEV) on Ethereum through open-source infrastructure and transparent block-building markets.
Double Spend
Attempting to spend the same digital asset more than once in a blockchain network.
Bid-Ask Spread
The difference between the highest bid price and the lowest ask price in an order book, indicating market liquidity.