This is the nearest US equivalent to a UK gilt.

Treasuries are IOUs issued in the US to allow the government to borrow to fill the gap between tax receipts and expenditure. Like their UK peers these IOUs usually carry a fixed coupon and redemption (or maturity) date. They are considered to be low risk as the odds of a default by the US government are very low since the US Federal Reserve can always print more money to settle US liabilities.

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