Learn about the risks involved in investing in U.S. Treasury bonds, such as inflation and interest rate risks, to help you make smarter financial choices.

Since 2022, the U.S. Treasury has relied heavily on issuing short duration (52 weeks or less) bills to fund the deficit. T-Bills have climbed from 14.67% of the outstanding debt in 2022 to 21.57% in 2025. Because of the increased supply of T-Bills, the federal reserve announced that they had to start purchasing T-bills in December.

Treasury bonds are low-risk loans to the U.S. government, typically paying out interest on a regular schedule. Like all bonds, they're still subject to interest rate risk: If rates rise, bond values fall. Treasury bonds are exempt from state and local ...

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) doesn’t have the prettiest chart when you look back at the past few years. The ETF has declined significantly due to the Federal Reserve’s record interest rate hikes,