Glossary: FI Module 05 — Government Issuers

TermDefinition
Sovereign bondA bond issued by a national government, denominated in domestic or foreign currency
Treasury bill (T-bill)A short-term (≤1 year) zero-coupon government security sold at a discount
Treasury note (T-note)A US government coupon-bearing security with maturity of 2–10 years
Treasury bond (T-bond)A US government coupon-bearing security with maturity >10 years (typically 20–30 years)
On-the-runThe most recently issued government security of a given maturity; most liquid
Off-the-runPreviously issued government securities; less liquid than on-the-run
Municipal bond (muni)A bond issued by a state, city, or local government entity
General obligation (GO) bondA municipal bond backed by the full faith, credit, and taxing power of the issuer
Revenue bondA municipal bond backed only by the revenue from a specific project or source
Supranational bondA bond issued by a supranational organization (e.g., World Bank, EIB, ADB)

See also: Credit Risk