Marketable securities from the U.S. Government--known collectively as Treasuries--follow this guideline and are issued as Treasury bonds, Treasury notes, and Treasury bills (T-bills). Technically speaking, T-bills aren't bonds because of their short maturity.The Treasury also issues securities to protect an investor against inflation known as TIPS.Through a local bank or savings institution, an individual is also able to purchase i-bonds and saving bonds

The U.S. Treasury issues new debt using an auction process where broker-dealers, banks, foreign governments, and even individual investors enter bids to purchase the latest Treasury security.With over $4 trillion in outstanding debt, Treasuries are constantly maturing and new securities are being issued to help fund the U.S government.

All debt issued by Uncle Sam is regarded as extremely safe, as is the debt of any stable country. The debt of many developing countries, however, does carry substantial risk. just like companies, countries can default on payments.

The following section will review investing in Treasury securities vs. other fixed income products, an intricate look at TIPS and where they fit in various portfolios, and a detailed review of the auction process.