A Treasury note is a type of debt obligation issued by the United States government. Treasury notes are sold in varying maturities, from 2 to 10 years. Investors who purchase Treasury notes are essentially lending money to the government for a specified period of time. In return, the government pays interest on the notes and repays the principal when the notes mature.
Treasury notes are considered to be a relatively safe investment, as they are backed by the full faith and credit of the U.S. government. As such, they are often used as a way to preserve capital or to generate a steady stream of income.