10-year Treasury

Interest is paid on a 10-year Treasury note at six-month intervals. The 10-year Treasury has a ten-year maturity. When an investor purchases a 10-year Treasury note, the investor is making a de-facto “loan” to the United States government. The government will in turn use that “loan” it receives – through the purchaser of the Treasury note – to finance itself. So, in essence, when you purchase a home, and when you obtain a 30-year fixed rate mortgage to finance the acquisition of your home, you are financing not only your home. You are also contributing to the financing of the daily operations of the country in which you live, by way of the payments you make on your home loan.