Treasury Obligations (Noun)
Meaning
Negotiable debt obligations of the United States government which guarantees that interest and principal payments will be paid on time.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The Federal Reserve purchases treasury obligations to inject liquidity into the economy during times of financial stress.
- Investors seeking low-risk investments often turn to treasury obligations, which are backed by the full faith and credit of the US government.
- The government issues treasury obligations to finance its activities and refinance its debt.
- Treasury obligations are considered to be extremely low-risk investments, as they are guaranteed by the US government.
- The yields on treasury obligations are often used as a benchmark for other types of debt securities.