United States Treasury securities, often called treasuries, are debt obligations issued by the U.S. government and secured by the full faith and credit and power to tax and borrow of the United States. The income from Treasury securities may be exempt from state and local taxes, but not from federal taxes.
Securities issued by the U.S. government and its agencies are the choice of many risk-averse investors or investors looking to diversify and balance their portfolios. Their safety can't be matched. However, yields on government issues usually run a little lower than on high-grade corporate bonds because they are safer. Risk brings a premium.
