Key Economic Indicators
Selected Interest Rates
Treasury securities are debt instruments issued by the Federal Treasury, which are backed by the full faith and credit of the U.S. Government. Treasury bonds are long-term debt instruments (10-30 years), treasury notes mid-term (1-10 years) and bills short-term (1 year or less). Interest rates have fallen steadily since 1995: from 6.88% to 5.43% in 2002 for 30-year Treasury bonds; from 6.57% to 4.01% in 2003 for 10-year Treasury bonds; and from 5.94 to 1.24 for 1-year Treasury bond. Due to repeated interest rate cuts by the Federal Reserve and relative stagnation in the economy, interest rates reached 30-year lows in 2003. Interest rates are higher for longer-term securities due to potential interest rate fluctuations during the term of the bond or note.
