A 30-Year Treasury is a long-term U.S. government bond with a maturity of 30 years, offering fixed interest payments and considered a low-risk investment.
A 30-Year Treasury, formally known as a 30-Year Treasury Bond, is a U.S. government-issued debt security that matures in 30 years from its issue date. These bonds pay semiannual interest and return the principal upon maturity. Because they are backed by the full faith and credit of the U.S. government, they are considered one of the safest long-term investments in the fixed income market. These bonds are issued in both competitive and noncompetitive bids through Treasury auctions and are commonly held by institutional investors, pension funds, and individual investors seeking long-duration exposure. The yield on a 30-Year Treasury is often used as a benchmark for other interest rates, including mortgage rates and corporate bonds, and reflects long-term expectations about inflation, economic growth, and Federal Reserve policy. The price of the 30-Year Treasury fluctuates inversely with market interest rates—when rates rise, bond prices fall, and vice versa. Therefore, while the bond offers long-term stability and predictable cash flows, it is more sensitive to interest rate risk than shorter-duration Treasuries. In portfolio management, 30-Year Treasuries provide duration hedging, income generation, and a perceived safe haven during periods of economic uncertainty or market volatility.
A 30-Year Treasury plays a strategic role in family office and wealth management portfolios, particularly where capital preservation, intergenerational wealth transfer planning, and hedge strategies are priorities. Its long maturity and low default risk make it valuable as a duration anchor in diversified fixed-income allocations. Additionally, the yield on 30-Year Treasuries often influences asset-liability matching strategies, especially for trusts, retirement accounts, or charitable remainder vehicles that manage long-term obligations. In times of market stress or economic downturn, allocations to long-dated Treasuries can enhance stability and liquidity across family office portfolios.
A family office considering a long-term income strategy allocates $5 million into 30-Year Treasuries yielding 4.00% annually. Over a year, they receive $200,000 in interest income. If interest rates fall to 3.00%, the market value of the bond increases, offering a capital gain opportunity if sold before maturity. Conversely, a rise in rates would reduce the bond's market value, though the fixed-income stream remains unchanged.
30-Year Treasury vs. 10-Year Treasury
While both are U.S. government bonds, a 30-Year Treasury has a longer maturity and higher interest rate risk than a 10-Year Treasury. Investors often use the 10-Year as a benchmark for medium-term rates, whereas the 30-Year reflects longer-term economic and inflation expectations. The longer duration of the 30-Year makes it more sensitive to interest rate changes, offering greater potential return—but also higher price volatility.
Are 30-Year Treasuries risk-free?
They are considered free of credit risk because they are backed by the U.S. government, but they are not risk-free overall. They carry significant interest rate risk due to their long duration, which can lead to price volatility.
How often do 30-Year Treasuries pay interest?
30-Year Treasury bonds pay fixed interest semiannually, typically every six months from the issue date.
Can I sell a 30-Year Treasury before it matures?
Yes, 30-Year Treasuries can be sold in the secondary market at any time before maturity. The price will depend on prevailing interest rates, time to maturity, and market conditions.
