Treasury bonds, notes, and bills are government-backed fixed-income securities. The main difference lies in their maturity periods and interest schedules. Treasury bills carry the shortest terms, from four weeks to one year, and pay interest only at maturity. Treasury notes last between two and 10 years, with interest paid every six months. Treasury bonds run for 20 or 30 years and also provide semiannual interest payments.

An inverted yield curve is often seen as one of the strongest signals of an upcoming recession. Historically, it has appeared before every U.S. recession since 1955, with just a single false reading. The inversion seen in 2019 came before the short downturn caused by the COVID-19 crisis, though that event should not be taken as a typical example of its predictive power.

Bond yields move opposite to prices because the coupon rate stays fixed while demand changes with interest rate conditions. When rates go up, older bonds with lower coupons lose appeal, causing their market value to fall. Investors buying at a lower price still earn coupons on the face value, giving them a higher effective return. Conversely, when prices rise, the yield earned on the same fixed coupon rate goes down for buyers.

Most paper U.S. Savings Bonds can be redeemed at a local bank or credit union. The exception is Series HH bonds, stopped in 2004, which must be mailed to Treasury Retail Securities Services with the required form. For electronic bonds, you can redeem them through TreasuryDirect, and the funds are typically sent to your checking or savings account within a couple of days.