Treasury notes (T-notes) have middle-range maturities lasting from one year to 10 years. They are essentially the same as Treasury bonds except for the shorter maturities. T-notes are taxed federally, but not statewide or locally. They are no longer callable if issued today, although many T-notes issued before 1984 are. Treasury notes are sold through auctions using the bidding process. These securities pay fixed coupon rates of interest every six months.

Treasury notes with two-year or three-year maturities are sold in $5,000 denominations. All others are sold in $1,000 units.

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