A 10-Year Treasury is a government debt security issued by the United States Department of the Treasury with a maturity period of 10 years from its issuance date. These securities are considered safe investments because they are backed by the full faith and credit of the U.S. government. They pay interest to bondholders at a fixed rate, typically on a semiannual basis. At the end of the 10-year period, the Treasury returns the full face value of the bond to the investor.
10-Year Treasuries are widely used in financial markets as a benchmark for interest rates and serve as a reference point for various other financial instruments and investments. They are popular among investors seeking a balance between income and relatively lower risk. The semiannual interest payments provide a predictable income stream, and the return of the principal at maturity makes them a valuable component of diversified investment portfolios.