U.S. Treasury securities-such as bills, notes and bonds-are debt obligations of the U.S. government. When you buy a Treasury security, you are lending money to the federal government for a specified period of time.

Because these debt obligations are backed by the "full faith and credit" of the government, and thus by its ability to raise tax revenues and print currency, U.S. Treasury securities are considered the safest of all investments. They are viewed in the market as having no "credit risk," meaning that it is virtually certain your interest and principal will be paid on time. Because of this unique degree of safety, interest rates are generally lower than for other widely traded debt, such as corporate bonds.

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