What distinguishes a Treasury Note from a Treasury Bill?

Treasury Notes and Treasury Bills are both types of government securities issued by the U.S. Department of the Treasury, and they fundamentally differ in their lengths of maturity. Treasury Bills have shorter maturities, typically ranging from a few days to one year, whereas Treasury Notes have medium-term maturities that range from two to ten years.

This difference in maturity directly impacts the investment strategies of individuals and institutions. Treasury Bills are often used by investors seeking short-term, low-risk investment options, while Treasury Notes can be more attractive to those looking for a steady income stream over a longer period. Understanding this distinction is crucial for financial managers and investors who need to align their investment choices with their specific financial goals and time horizons.

Factors like interest rate type and ownership structure do not differentiate these two instruments, nor are they issued by corporations, making the length of maturity the key and correct distinguishing factor.