All treasury securities are liquid and traded on the secondary market. They are separated by their maturity dates, which vary from 1 month to thirty years. One major advantage of Treasuries is that the interest earned is exempt from state and local taxes. Treasuries are backed by the full faith and credit of the U.S.Treasury bills (T-bills) are short-term securities that grow in less than one year. They are sold at a discount rate from their stated value and thus do not pay interest prior to maturity. Treasury notes (T-notes) earn a fixed rate of interest every six months and have maturities ranging from 1 to ten years.federal government bond market and is also used as a benchmark by the mortgage market. Treasury bonds (T-bonds) have maturities ranging from 10 to thirty years. Like T-notes, they likewise have a coupon payment every six months. Treasury Inflation-Protected Securities (IDEAS) are inflation-indexed bonds. The principal value of TIPS is changed by modifications in the Customer Cost Index - what is a bond finance rt511.