Key takeaways

• Treasury securities include bills, notes, bonds, TIPS, and floating rate notes, each with different maturities and payment structures.
• Investors can buy Treasuries through TreasuryDirect or a broker, bank, or dealer, with a variety of bidding and trading options.
• Holding Treasuries to maturity can provide predictable income, while selling early may result in gains or losses based on interest rates.

“Treasury bonds” have been making headlines in the financial world, with more than $30.8 trillion in marketable Treasury securities being held by the public as of May 2026.¹ Longer-term Treasury bonds, in particular, have been attracting attention because of their yields, which hit around 5.19% in May.² When considering these investments, it’s important to sort through the benefits, differences, and how Treasury products like bills, notes, and bonds actually work.

How to buy Treasury bonds

While “Treasury bonds” in conversation can refer to many types of Treasury securities, you can buy these assets either directly through the government’s TreasuryDirect service at auction or through a bank, broker, or dealer. TreasuryDirect supports noncompetitive auction bids, while brokerages may also let investors buy Treasuries on the secondary market and — depending on the platform — submit competitive or noncompetitive bids.

Treasuries may be useful for a conservative investor seeking steady income or balancing inflation-sensitive goals, but the asset classes vary in terms of liquidity, maturity date, reinvestment preferences, and tax handling.

What kinds of Treasury securities are there?

The first thing to note about Treasuries is that naming of the securities can differ between what you hear mentioned in the news or in talks with friends or family — and the actual official names of what’s available.

People who are interested in "Treasury bonds" may mean Treasury bills or notes, based on government definitions. These terms are not interchangeable, and “bonds” refer to Treasury securities with 20-year and 30-year maturity dates.³

Other Treasury marketable securities include bills, notes (often mistaken as “short-term Treasury bonds”), bonds, TIPS, and FRNs. Make sure you compare the differences between the types of Treasuries:

Read more: What are I bonds and how do they work?

Options for where to buy Treasury bonds

Investors have two routes when deciding how to buy U.S. Treasuries: directly from the federal Treasury department, or through various banks, brokers, or dealers.⁴ Determining which option to take should account for each bidding process, timing, and flexibility.

Purchasing Treasury bonds through TreasuryDirect

With a TreasuryDirect account, investors can buy and hold Treasury notes, bonds, bills, TIPS, and FRNs directly from the U.S. government. There’s also the option for account holders to create and link to a minor’s account to buy and hold securities for children under 18. However, TreasuryDirect does require a 45-day holding period before transferring or selling newly acquired securities — one aspect to consider if a quicker turn is desired.⁵

TreasuryDirect requires a minimum investment of $100 for Treasury bills, notes, bonds, TIPS, and FRNs, and all purchases must be made in $100 increments ($100, $200, $300).

Buying Treasury bonds through a broker, bank, or dealer

Using a financial institution to buy Treasury securities allows investors to access both competitive and noncompetitive bids in auctions — while TreasuryDirect only allows non-competitive ones.⁶

With competitive bidding, you disclose upfront either the yield, discount rate, or discount margin that you’ll accept for a particular security type in the auction. While this can give investors more control over their bids, there’s no guarantee that the bid will be accepted.⁷

Unlike TreasuryDirect's mandatory 45-day original-issue holding period, Treasury securities purchased and held through the commercial book-entry system (brokers, banks, and dealers) are not subject to that TreasuryDirect holding-period requirement. Broker, banks, and others also may have different rules around bid amounts, so investors should check with their provider.⁸

What to check before you place a Treasury order

If you’re ready to buy Treasuries, make sure you understand how they work and the different terms you may come across.⁹

How to manage, reinvest, or sell Treasury bonds

Once you own Treasury bonds, here’s how they can fit into your wider investment portfolio.

Hold until maturity: You’d receive interest payments according to the term schedule and your principal back at maturity.

Reinvest: TreasuryDirect allows owners to reinvest the proceeds from notes, bonds, bills, and FRNs that are maturing into a new security of the same type.¹⁰

Sell before maturity: Investors can sell their securities before maturity, but this cannot be done through TreasuryDirect.¹¹ You’d have to transfer the assets to a broker/dealer account, and then use that institution for the sale.

Whatever you decide to do with your Treasuries, keep these key rules in mind:

• TreasuryDirect has a holding period. Treasuries bought on the site must be held there for 45 calendar days before any sale or transfer can be executed.
• Watch how the secondary market is performing. If interest rates have risen, the market value of an existing fixed-rate Treasury may be lower; if rates have fallen, value could be higher.
• Tax forms come from different sources. TreasuryDirect provides 1099 forms for securities held in a TreasuryDirect account, while brokers handle tax forms for securities held at their institutions.

Are Treasury bonds a good fit for your money?

Treasury bonds can play a role in a broader financial plan. Your savings time horizon, rate of return goals, level of flexibility, and other factors can determine if they’re a potential good fit.

The benefits of Treasury bonds can especially stand out for people with these priorities:

• You want U.S. government-backed fixed income: Treasury securities are backed by the full faith and credit of the U.S. government and can be part of a diversified portfolio to hedge against any market volatility.
• You can match the maturity date with a future expense: Having money in bonds can be one way to plan for retirement income or a future savings bump.
• You want to collect predictable interest from notes or bonds held to maturity: The assurance of a fixed rate of return could be attractive for some investors.
• You want to leverage Treasuries being exempt from state and local taxes: Earnings from Treasury marketable securities aren’t subject to these taxes, though are taxed at the federal level.¹² Consider consulting a tax professional to see how this strategy fits in with other taxable accounts or assets you may hold.

Treasury bonds might not be the best fit if your financial goals require greater flexibility or quick access to funds. Here are some scenarios to consider:

• You want higher growth potential: With a term of 20 or 30 years, bonds have a fixed rate that’s locked in from the time of purchase.
• You need to be able to withdraw funds quickly, without worrying about maturity: Covering unexpected bills can be stressful, and Empower’s free emergency fund calculator can help map out which amounts fit your lifestyle.

Treasury bonds could figure into a balanced portfolio, though investors need to take into account how “locked up” they want their money and how these assets fit in with their personal risk tolerance.

Frequently asked questions about Treasury bonds

Can Treasury bonds be purchased directly from the U.S. government?

Yes. Treasury securities can be purchased through TreasuryDirect at auction using noncompetitive bids. They can also be purchased through banks, brokers, and dealers, which may offer additional bidding options and access to the secondary market.

What is the minimum amount needed to buy Treasury securities?

TreasuryDirect requires a minimum purchase of $100 for marketable Treasury securities, with additional purchases made in $100 increments. Other financial institutions may have different minimum investment requirements.

Can Treasury bonds be sold before they mature?

Yes, but Treasury securities cannot be sold directly through TreasuryDirect. They must first be transferred to a broker or dealer, where they can be sold on the secondary market. Their market value may be higher or lower than the original purchase price.

Are Treasury securities taxed?

Interest earned on Treasury marketable securities is generally subject to federal income tax but is exempt from state and local income taxes. Tax treatment may vary depending on the type of Treasury security and an individual's circumstances.