Treasury Bonds

A treasury bond is an intermediate term debt obligation of the US government that has maturities of one to thirty years. They are issued in $1,000 denominations and pay interest semiannually. T-notes are a common abbreviation for U.S. Treasury Bonds. The Social Security Administration manages the SSI program. Even though Social Security manages the SSI program, SSI is not paid for by Social Security taxes. SSI is paid for by U.S. Treasury general funds, not the Social Security trust funds.

Fast Facts

  • A U.S. treasury bond may be a fixed rate, interest bearing security issued by the U.S. Treasury which will mature in thirty years.
  • Social Security tax income is deposited on a daily basis and is invested in "special-issue" securities. The cash exchanged for the securities goes into the general fund of the Treasury and is indistinguishable from other cash held in the general fund.

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