*Treasury Bonds*
-Word of the Day-

Treasury bonds are bonds (loans) given out by the US government which are for a period greater than 20 years.

The bond owners receive periodic interest payments for the duration that they hold the bonds for.

Treasury bonds play a big role in the functioning of the global economy.

The US government is considered the safest/least risky borrower in the world.

Recently, the US low-interest rates on its long-term bonds to support its economy coming out of the recession due to the pandemic.

Due to lower returns, many investors took their money out of US treasury bonds and invested in other places like equity markets of countries like India.

Even more recently, when the US raised the interest rate slightly, some money found its way back to the US from India.

This is just one example of how treasury bonds affect economies around the world.