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The Commonwealth Government Issues Treasury Notes and Treasury Bonds
Treasury notes and bonds are a discount security issued by the Reserve Bank on behalf of the Commonwealth government. The difference between treasury bonds and treasury notes is their length until maturity. Treasury notes mature in more than a year, but not more than 10 years from their issue date. Bonds, on the other hand, mature in more than 10 years from their issue date. Also, bids for treasury bonds must be for $100 000 or more whereas the minimum bid for treasury bonds stand at $1000.
Treasury notes are issued to smooth the commonwealth government's cash balances. …
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