These days, individual investors are increasingly seeking stable asset allocations amid the global interest rate hike cycle. In particular, U.S. Treasury bonds are regarded as the safest assets backed by the credit of the world's strongest economy. Although interest rates are low, they are attractive because they can be liquidated at any time and offer regular interest income. In this article, we will provide a comprehensive overview of the structure of U.S. bond interest rates, actual investment methods, and tailored strategies for Korean investors.
First, what you need to know: the basic mechanism of bonds
A bond is essentially a 'contract to lend money.' When the government or a corporation needs funds, they raise capital from investors.