So these treasury securities, whether they're T Bills, treasury bills, treasury notes, or treasury bonds.

What is the difference between treasury bills, treasury notes, and treasury bonds?

You have a sense of what treasury bills, treasury notes, and treasury bonds are.

It can buy Treasury securities, so instead of short term Treasury securities, maybe it could be longer term Treasury securities.

What is even a treasury?

This is a Treasury bond.

And when the government borrows money, they're essentially issuing treasury bills, if you are talking about the U.S., treasury bills and treasury bonds.

So, there's more demand for the treasury, the interest on the treasury will go down

So there is the U.S. Treasury.

And Jack Benny is treasury secretary.

And that's given by the treasury rate.

So in exchange it gets treasury securities.

So this is the treasury yield curve.

That's better than buying Treasury Bills, right?

Treasury bond if it's a longer duration.

The public agency with the greatest expertise on Earth is of course the treasury that is, the British Treasury.

It is a loan to the U.S. Treasury.

They make a little net money for the treasury.

He is the main buyer of U.S. Treasury bonds.

10 million, in negotiable US Treasury certificates, coupons attached.

We call them petrodollars. The treasury was bursting with money.

So then there are other people who own Treasury bills.

So this right here is a Treasury bond or bill.

So this is what people are talking about when they say treasury prices go up, if treasury prices go up then the yields go down

I'll draw it as a dollar bill, right over there they hand the U.S. Treasury money, and then the U.S. Treasury gives them an IOU.

This IOU is what a Treasury bill is, and what it entitles the holder of this piece of paper, it allows them to get interest from the Treasury, depending on what type of Treasury bill or bond it will be.

And in the first case we assumed a 5 treasury rate.

If I buy a treasury bond, so if I'm buying debt,

Similarly, if it's three months, it's a three month treasury bill.

So I actually went to the treasury website, so that's treas.gov.

And that's better than what you get out of treasury bonds.

And then there's other people that have already bought Treasury bills.

Treasury notes are loans that are from one year to 10 years.

And the main asset they're going to buy is U.S. Treasury bills.

And maybe it also does some longer term treasury securities, or whatever else.

And then when you go beyond 10 years, these are called treasury bonds.

But they usually deal with the short term Treasury debt because it's safer.

This difference between this AAA corporate debt and the treasury, that is the yield spread.

So I will give the government 1,000, the government would give me a treasury bill.

They are going to issue Treasury bills, when they essentially just need to borrow money.

So when most people talk about the yield curve, they're talking about the treasury yield curve.

It's much better than buying treasury bonds right now, because you're making more money on it.

And the public markets, when you try to sell that treasury, will then expect. a higher yield.

When you buy a US treasury security, you are essentially giving a loan to the US Federal Government

longer, so things that are maybe going to maybe 10 year treasury bonds, or further out than even that.