How to Buy U.S. Treasury Bonds in 2026

U.S. Treasury securities are widely used by investors seeking income, capital preservation and portfolio diversification. Backed by the U.S. government, they carry relatively low credit risk, but their prices can still fluctuate as interest rates and inflation expectations change. Although “Treasury bonds” is commonly used as a general term, Treasury bills, notes, bonds, TIPS and floating-rate notes have different maturities and payment structures.

This guide explains how to buy U.S. Treasury bonds through TreasuryDirect, brokers and funds, alongside current rates, tax considerations, risks and trading alternatives.

Key Takeaways

• Treasury bills, notes and bonds differ primarily by maturity and how their investment returns are paid.
• Investors can generally buy marketable Treasury securities from $100 in increments of $100.
• TreasuryDirect provides access to new Treasury auctions, while brokers may also offer secondary-market securities.
• Treasury interest is generally subject to U.S. federal income tax but exempt from state and local income taxes.
• Government backing reduces credit risk, but Treasury prices can fall when interest rates rise.
• Treasury ETFs, futures and CFDs provide alternative price exposure without the same ownership rights as holding an individual Treasury.

What Are U.S. Treasury Bonds?

U.S. Treasury bonds are marketable debt securities issued by the U.S. Department of the Treasury. When investors buy them, they are effectively lending money to the federal government. In return, the Treasury makes scheduled interest payments and repays the bond’s face value at maturity.

In the strict sense, the term “Treasury bond” refers to securities with maturities of 20 or 30 years. However, investors often use “Treasury bonds” as an umbrella term for the broader Treasury market.

The main types of marketable Treasury securities are:

Marketable Treasurys should not be confused with Series I or Series EE savings bonds. Marketable securities can be transferred and sold before maturity, whereas savings bonds are registered nonmarketable securities with different interest and redemption rules.

How Do U.S. Treasury Bonds Work?

The Treasury issues new securities through scheduled auctions. Investors can participate through TreasuryDirect or an eligible bank, broker or dealer. TreasuryDirect accepts noncompetitive bids, which means the investor agrees to accept the yield determined at auction.

Returns depend on the security selected:

• Treasury bills are generally issued below their face value. The investor receives the full face value at maturity, and the difference represents the interest earned.
• Treasury notes and bonds pay a fixed coupon every six months and return their face value at maturity.
• TIPS adjust their principal based on changes in the Consumer Price Index.
• Floating-rate notes pay quarterly interest linked to short-term Treasury bill rates.

An important distinction is the difference between coupon rate and market yield. The coupon determines the bond’s contractual interest payments, while the yield reflects its return based on the price currently paid.

Bond prices and yields normally move in opposite directions. If new Treasurys offer higher yields, an older bond with a lower coupon becomes less attractive, causing its market price to fall. If yields decline, existing higher-coupon bonds may become more valuable.

An investor holding an individual Treasury until maturity may receive its stated face value regardless of interim price movements. However, an investor selling early receives the prevailing market price, which may produce a gain or loss.

What Are U.S. Treasury Rates Today?

“U.S. Treasury bond rates today” can refer to several different figures, including auction investment rates, coupon rates, secondary-market yields and the Treasury’s daily par yield curve. Investors should not assume these figures are interchangeable.

Selected points on the U.S. Treasury par yield curve were:

Rates shown are from the U.S. Treasury daily par yield curve for August 18, 2026. They are indicative constant-maturity par yields, not guaranteed auction rates or the exact yields available through a broker. Treasury rates change regularly and should be checked again before publication or investment.

The yield curve reflects market expectations for inflation, economic growth and Federal Reserve policy. Greater government borrowing can also influence yields by increasing the supply of Treasury securities.

Longer maturities do not always offer higher yields. During an inverted yield curve, short-term securities may yield more than long-term bonds because investors expect slower growth or lower policy rates in the future.

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How to Buy U.S. Treasury Bonds in Five Steps

Investors deciding how to invest in U.S. Treasury bonds must select a security, purchase channel and maturity that fit their financial objectives.

Step 1: Choose the Right Treasury Security

Start by considering when the money may be needed.

Treasury bills may suit short-term cash requirements, while notes provide medium-term income. Twenty-year and 30-year bonds lock in a coupon for much longer but carry greater interest-rate sensitivity. TIPS may appeal to investors concerned about inflation, while floating-rate notes adjust more quickly to changing short-term rates.

Also consider whether regular income is required. Bills usually pay their return at maturity, whereas notes and bonds make semiannual interest payments.

Step 2: Choose TreasuryDirect or a Brokerage Account

TreasuryDirect allows eligible investors to buy newly issued Treasurys directly from the U.S. government. Marketable securities generally have a minimum purchase amount of $100 and must be bought in increments of $100.

A brokerage account may provide access to both new auctions and the secondary market. This makes it possible to buy outstanding securities with a specific remaining maturity or sell existing holdings more easily.

TreasuryDirect does not provide direct secondary-market selling. Securities held there must generally be transferred to a bank, broker or dealer before they can be sold.

Step 3: Decide Between an Auction and the Secondary Market

At an auction, investors purchase a newly issued or reopened Treasury security. TreasuryDirect customers submit noncompetitive bids and receive the yield determined by the auction.

On the secondary market, prices depend on prevailing yields, accrued interest, liquidity and the time remaining until maturity. A Treasury may trade above face value at a premium or below face value at a discount.

Investors comparing secondary-market bonds should examine yield to maturity rather than relying solely on the coupon rate.

Step 4: Place the Order

Before confirming a purchase, check:

• The security type and maturity date
• The amount invested
• The purchase or settlement price
• The coupon rate
• The yield to maturity
• The settlement date
• Accrued interest
• Any broker commission or markup

Buying a bond above face value can reduce its yield to maturity because the investor generally receives only the stated face value when it matures.

Step 5: Manage the Investment

After purchasing the Treasury, decide whether to hold it to maturity, reinvest the proceeds or sell it earlier.

TreasuryDirect supports reinvestment for certain eligible securities. Investors using brokers may also build a Treasury ladder by purchasing securities with different maturity dates. This can provide recurring access to capital and reduce the risk of investing an entire amount at a single interest rate.

Tax records should also be retained. Investors may receive forms such as Form 1099-INT or Form 1099-OID, depending on the security and how its return is reported.

TreasuryDirect, a Broker or a Bond ETF: Which Is Better?

The best purchase method depends on whether the priority is direct ownership, trading flexibility or diversified market exposure.

TreasuryDirect may suit eligible investors who want a straightforward way to buy new securities and hold them until maturity. Its main limitation is that investors cannot immediately sell securities through the TreasuryDirect platform.

A broker offers more flexibility. Investors may compare securities across maturities, use the secondary market and keep Treasurys alongside other investments. Broker pricing should be reviewed carefully because markups and fees vary.

Treasury ETFs provide diversified exposure and intraday liquidity, but they do not behave exactly like individual bonds. A conventional bond ETF does not have a single maturity date at which it returns a fixed face value. Its price can remain above or below an investor’s entry point, and returns depend on both distributions and market-price changes.

Are U.S. Treasury Bonds Safe?

U.S. Treasury securities are backed by the full faith and credit of the U.S. government. This gives them relatively low credit and default risk, but it does not mean investors are protected from every type of loss.

Duration risk is particularly important for 20-year and 30-year bonds. A relatively small change in yields can create a meaningful change in their market prices.

Investors who hold a standard Treasury to maturity generally receive its face value, but inflation may reduce what that money can purchase. TIPS address some inflation risk by adjusting principal, although their market prices can still fluctuate.

For these reasons, Treasurys are better described as having low credit risk rather than being completely risk-free.

Are U.S. Treasury Bonds Taxable?

For U.S. taxpayers, interest from Treasury bills, notes and bonds is generally subject to federal income tax. However, Treasury interest is normally exempt from state and local income taxes.

Tax treatment can become more complex in several situations:

• Selling a Treasury above its adjusted purchase price may create a taxable capital gain.
• Original issue discount may need to be reported as interest.
• TIPS inflation adjustments may create federally taxable income before the adjusted principal is received at maturity.
• Bond ETF distributions and capital gains may be treated differently from interest on directly held Treasurys.

Non-U.S. investors should not assume these rules apply to them. Local tax laws, withholding requirements, residency status and tax treaties can affect the final treatment. Professional tax guidance may be appropriate where the position is unclear.

How to Short U.S. Treasury Bonds or Trade Price Movements

Buying an individual Treasury is not the only way to obtain exposure to government bond markets. Traders expecting yields to rise and bond prices to fall may use instruments designed for bearish positions.

Inverse ETFs seek to deliver the opposite of an index’s daily performance, but compounding can cause longer-term results to differ from a simple inverse return. Futures and options provide more direct rate exposure but require an understanding of contract sizes, expiry dates and margin.

CFDs allow traders to speculate on rising or falling bond prices without purchasing the underlying security. Markets.com lists four government bond CFD instruments:

US TBond 30Y and US TNote 10Y are the most relevant instruments for traders focused on the U.S. Treasury market. The UK gilt and German government bond CFDs provide exposure to other major sovereign bond markets.

CFD traders do not own the underlying bond and are not entitled to its coupon or yield payments. The result instead depends on the instrument’s price movement, spreads, financing costs and any applicable rollover adjustments.

How to Trade Bond Price Movements With Markets.com

Step 1: Open and verify an account: Register with Markets.com and complete the required identity and eligibility checks.

Step 2: Choose a bond CFD: Search for US TBond 30Y, US TNote 10Y, Gilt 10Y Bond or GER 10Y Bond, subject to availability in the relevant jurisdiction.

Step 3: Review the trading conditions: Check the current spread, leverage, required margin, trading hours, overnight financing and rollover schedule.

Step 4: Select a direction and position size: Buy if expecting the bond price to rise or sell if expecting it to fall. Remember that higher Treasury yields commonly place downward pressure on bond prices.

Step 5: Manage the position: Consider stop-loss and take-profit orders, and monitor inflation releases, employment data, Treasury auctions and Federal Reserve decisions.

Bond CFDs are leveraged products. Leverage can amplify gains, but it can also cause rapid losses. They are designed for speculative price trading and should not be confused with buying U.S. Treasury bonds for coupon income or repayment at maturity. Instrument availability and trading conditions vary by Markets.com entity and jurisdiction.

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Final Thoughts: Should You Buy U.S. Treasury Bonds?

Understanding how to buy U.S. Treasury bonds begins with choosing the right maturity and purchase method. TreasuryDirect may suit eligible investors who want direct auction access and intend to hold until maturity, while brokers provide greater secondary-market flexibility. Treasury ETFs offer diversified and liquid exposure but lack the fixed maturity of an individual bond. Investors should consider interest-rate, inflation and currency risks alongside the quoted yield. Traders seeking short-term exposure to rising or falling bond prices can also consider derivatives such as CFDs, but these leveraged products carry substantially different risks from direct Treasury ownership.

FAQs

What Is the Best Way to Buy U.S. Treasury Bonds?

TreasuryDirect may be suitable for eligible investors who want to buy new securities and hold them to maturity. A brokerage account may be more convenient for secondary-market access and easier selling. The best choice depends on the investor’s country, liquidity needs and intended holding period.

Can Regular People Buy U.S. Treasury Bonds?

Yes. Eligible individual investors can buy marketable Treasury securities through TreasuryDirect or participating banks, brokers and dealers. The minimum purchase amount for most marketable Treasurys is $100, with additional purchases made in increments of $100.

How Much Does a $10,000 Treasury Bill Cost?

The price depends on the bill’s maturity and the yield determined at auction or in the secondary market. A $10,000 face-value bill is generally purchased for less than $10,000, with the investor receiving $10,000 at maturity. The precise discount changes with market rates.

How Much Is a $100 Treasury Bond Worth After 30 Years?

A marketable 30-year Treasury with a $100 face value generally pays $100 at maturity. The investor also receives semiannual coupon payments throughout the term. Total cash received depends on the bond’s coupon rate and whether those payments are reinvested.

What Is the Downside to Buying Treasury Bonds?

Treasury bonds can lose market value when interest rates rise, particularly when they have long maturities. Other disadvantages include inflation risk, opportunity cost and potentially lower returns than riskier assets. Selling before maturity may also result in a capital loss.

Who Owns the Most U.S. Treasury Bonds?

Treasurys are held by U.S. households, financial institutions, funds, government accounts, the Federal Reserve and foreign investors. Among identified foreign holders, Japan ranked first in June 2026 with approximately $1.117 trillion. Custodial reporting means country-level figures may not always identify the ultimate owner.