What is a bond?

At its core, a bond is essentially a standardized IOU. They can be categorized into various types based on the borrower: government bonds, municipal bonds, corporate bonds, and asset-backed bonds, to name a few. As long as the issuer doesn't default, bondholders are entitled to receive periodic interest and retrieve the principal upon maturity.

US Treasury bonds are national debts issued by the US Department of the Treasury. Backed by the full faith and credit of the US government, they're considered extremely low-risk financial instruments.

Why invest in bonds?

Diversification of asset allocation

The correlation between bond prices and stock prices is generally low. Allocating bonds, especially government bonds, in an investment portfolio often helps diversify investments, reduce portfolio volatility, and enhance the risk-reward ratio.

More predictable returns

Unless the issuer defaults, the yield to maturity of a bond is usually determined at the time of purchase. While bond prices may fall when interest rates rise, as long as the bond is held to maturity, the yield is guaranteed.

Consistent cash flow

Bonds, like medium-to-long-term US Treasuries, typically pay interest as per the agreement. Investors can choose different bonds based on their cash flow needs.

Invest in US Treasury
Bonds with Tiger Trade

High security with comparatively high return.

Start with as low as USD 1,000. Low entry barrier and fees.

Real-time transactions, supports T+0, seamless switch with US stocks.

Principal and interest credited T+1. Purchase directly with money market funds, no idle funds.



  • 0.08%
    of face value

Platform fee

  • 0.04%
    of face value
Minimum of USD 5, maximum of USD 15

Custody fee

  • 0.08%^
^ Calculated daily based on the daily closing price.


Purchase face value Holding period Estimated total fees *
USD 10,000 90 days USD 15
USD 100,000 90 days USD 115
USD 1,000,000 90 days USD 1,012

* Cost estimates are indicative; actual costs depend on bond price volatility and holding duration, and may not match estimates.

How to buy US Treasury
Bonds on Tiger Trade


After registering, opening an account, and depositing funds, go to "Quotes - Wealth."


Select a US Treasury bond contract based on your investment duration and expected returns. You can view the contract's market data and related information.


Place an order to buy, with options for limit orders and market orders. When selecting a market order, choose a contract with high liquidity.



How safe are US Treasury Bonds? Is the principal and interest guaranteed?

US Treasury Bonds are considered among the safest investments globally, backed by the credibility of the US government. Historically, the US has never defaulted on its bonds, making many investors see them as a “risk-free” benchmark.

What are the risks of investing in US Treasury Bonds?

Risks include:

  • Interest Rate Risk: Fixed-rate bond prices may drop as market interest rates rise.
  • Inflation Risk: Over the long term, high inflation can erode actual returns.
  • Currency Risk: For non-US investors, fluctuations in the USD exchange rate can affect returns.
  • Reinvestment Risk: You might reinvest at lower rates when bonds mature or pay interest.

However, US Treasury Bonds are still seen as relatively low-risk compared to other assets.

Who should consider investing in US Treasury Bonds?

Suitable investors include those:

  • Seeking stability and wanting to avoid stock market volatility.
  • With a conservative approach aiming for capital preservation.
  • Desiring portfolio diversification.
  • Approaching or in retirement valuing capital safety and steady returns.
  • Using hedge strategies during economic downturns or uncertain times.
  • Non-US investors hedging against their currency depreciation.
  • Managing short-term large cash holdings.

In summary, anyone seeking stable returns while minimizing overall investment risk might consider US Treasury Bonds.

Why can’t I see US Treasury Bonds in my Tiger account?

US Treasury Bonds are available in select regions via Tiger Brokers. Check under “Market-Wealth-US Treasury”. For specifics, consult customer service in the app.

How much is the bond interest, and how is it disbursed?

Most medium-to-long-term US Treasury Bonds pay interest semi-annually; short-term ones often discount at purchase instead of interest. For instance, a $10,000 bond at 2.5% pays $250 yearly or $125 semi-annually.

Disbursement rules of Tiger Brokers:

The interest is typically credited to your account within one business day of the interest payment date, and you'll receive a notification via the Tiger Trade app. At that time, the real-time value of your Tiger account will increase, and the day's statement will reflect the change in the amount of interest paid.

Generally, US Bond interest payments are transparent and standardized, contributing to their low-risk reputation. As with all investments, know the terms before purchasing.

How is the yield to maturity calculated?

This represents the total return if you hold the bond until maturity. It involves intricate internal rate of return calculations, requiring specialized financial calculators. Each bond contract already indicates this yield.

Please be awared that your actual returns can be influenced by factors like commissions, fees, holding period, and daily price changes, and might not align perfectly with the shown YTM.

What are the US Bond settlement rules with Tiger Trade?

Tiger Trade supports T+0 trading, allowing same-day buying and selling. Settlement is T+1, meaning funds are available the next trading day after a sale. After bond maturity, principal receipt also follows the T+1 rule.

Can I short US Treasury Bonds?

This feature is being updated. Please watch for updates in the Tiger Trade app.