Definition
Debt issued by the U.S. government: T-bills (under a year), notes, and bonds. Backed by the federal government, exempt from state income tax, and the benchmark for safe yield.
Why it matters
Treasuries are the market's definition of safe: the rate every other investment is judged against. The state-tax exemption quietly boosts their effective yield for savers in high-tax states.
Example
A saver in a high-tax state ladders 6-month T-bills for cash they will not need this year. The yield rivals a HYSA, and the interest escapes state income tax, which an ordinary savings account's interest does not.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.