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Treasury bonds, or T-bonds, are issued by the U.S. Department of the Treasury in order to raise funds for government functions. Since a T-bond is backed by the full faith and credit of the U.S.

Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.