What are Treasuries?
Government treasuries – bonds issued by national governments – are considered among the safest investments.
When an investor purchases a government bond they are, lending money to the government for a set number of years. In return they receive interest payments on the amount of the loan. The face value of the bond does not change.
Bonds do not have to be held until they mature. There is a thriving secondary market for government bonds.
There are a number of factors to be considered when calculating the likely future value of a government bond, including political stability, the risk of inflation and the value of its currency.