A treasury note is an interest-bearing debt security that is issued by the United States government. It matures anywhere within a range of one to 10 years. The interest rate associated with this security is fixed, and interest payments are made to investors at six-month intervals. Treasury notes may be purchased at auction from the government, or on the secondary market from a third party at a later date.
Treasury notes are quite popular as investments, since the secondary market is active, and the U.S. government is considered to be a highly safe issuer of securities.