Treasury notes are treasury securities issued by the US Department of the Treasury through the Bureau of Public Debt. Treasury notes are available for purchase by the general public through competitive bids or noncompetitive purchase; in noncompetitive purchase, the yield is derived from recent competitive bidding auctions.
Interest payments on treasury notes are made every six months until maturity. Interest income is taxable on the federal level but is tax-exempt at the state and municipal levels. Most investors hold treasury bills to be one of the least risky investments available in the US market, and there is a large and active secondary market in treasury notes.