Government bonds come in a variety of types, each with unique characteristics which appeal to different investment needs. If we look at the US government bond universe, investors have a wide variety of options across various maturities and structures, catering to a huge range of strategies and risk preferences. Let's have a look at some US government bonds in more detail. Treasury bills or T-bills are short term securities with maturities of 4, 8, 13, 26, or 52 weeks. They don't pay interest, but are sold at a discount to face value, allowing investors to realize a return at maturity when the full face value is paid. The US government issues T-bills to meet short-term funding needs, providing flexibility to manage cashflow requirements without committing to long-term debt obligations. Investors are often attracted to T-bills for their low risk liquidity and ability to act as a safe temporary holding for cash, especially in uncertain markets or when other asset prices are volatile. T-bills are also popular among investors who want to preserve capital value while maintaining quick access to those funds. Let's look at T-notes and T-bonds next. While both treasury notes, T-notes and treasury bonds, T-bonds share the same mechanics, paying semi-annual interest and returning the face value at maturity. The distinction between them is based on their initial maturities at issuance. T-notes are issued with maturities of 2, 3, 5, 7, or 10 years. While T-bonds are long-term instruments with the maturity of 30 years. These regular maturities make certain treasury securities benchmark issuances, meaning they are widely used as reference points in financial markets. For example, the 10 year keynote is a crucial benchmark for assessing the general level of interest rates in the US and is often used to price everything from mortgages to corporate bonds.

A 10 year corporate bond might be priced at a spread above the 10 year treasury yield to take account of the additional credit risk. The 30 year T-bond also serves as a benchmark for long-term financing needs, providing insight into market expectations about future interest rates and economic conditions despite their fixed maturities. Investors still enjoy substantial flexibility as they can buy a 10 year note or 30 year bond and choose to sell it before maturity depending on their changing needs or market conditions. Next, we've got STRIPs. STRIPS, which stands for separate trading of registered interest, and principle of securities, are essentially zero coupon bonds created by separating out the individual interest and principle payments of T-notes and T-bonds. If you buy the five year STRIP of a 10 year bond, you are only buying the right to receive the coupon on the bond that will be paid in five years time and no other cash flows from that bond. Each STRIP is sold at a discount with the full face value repaid at maturity. STRIPS appeal to investors looking for long-term predictable cash flows without periodic income.

And finally, we've got treasury inflation protected securities or TIPS, which are designed to protect against inflation. They pay a fixed coupon rate, but the principle value adjusts with inflation, meaning coupon cash flows rise as the fixed coupon rate is applied to an increased adjusted principle. This makes TIPS attractive for investors concerned about preserving purchasing power over time. Each of these securities offers a distinct combination of maturity, yield and inflation protection features, allowing investors to choose options that best fit their risk tolerance and investment horizon.