U.S. Treasury securities, issued by the U.S. government, are widely regarded as one of the safest investment vehicles globally. Therefore, a comprehensive understanding of the array of product options and investment strategies associated with U.S. Treasury securities is essential for investors.

Types of U.S. Treasury Securities

U.S. Treasury securities are available in various forms, including short-term securities (such as 3-month and 6-month bills), medium-term securities (ranging from 1 to 10 years), long-term securities (20 and 30 years), and Treasury Inflation-Protected Securities (TIPS). Importantly, each type possesses distinct maturities and yields.

Investment Strategies

1. Selecting Treasury Securities Based on Investment Objectives

- Short-Term Securities: These are suitable for investors seeking liquidity and short-term returns.

- Medium-Term Securities: These are appropriate for individuals with medium-term investment goals, such as saving for education or home purchases in the near future.

- Long-Term Securities: These are ideal for investors aiming for stable long-term returns with reduced interest rate risk.

- TIPS: These are specifically designed for investors looking to hedge against inflation risk.

2. Diversification

Investors should refrain from allocating all their funds to a single Treasury product. By diversifying investments across various types of Treasury securities, they can mitigate risk and enhance the overall stability of their investment portfolios.

3. Monitoring Interest Rate Movements

The prices of U.S. Treasury securities exhibit an inverse relationship with market interest rates. For instance, when market interest rates rise, the prices of Treasury securities typically decline, and vice versa. Consequently, investors should closely monitor the Federal Reserve's interest rate policies and fluctuations in market rates.

4. Utilizing QDII Funds

Domestic investors can indirectly invest in U.S. Treasury securities through Qualified Domestic Institutional Investor (QDII) funds. Notably, these funds are managed by professional fund managers and can invest in the global bond market, including U.S. Treasuries. This approach is suitable for investors who lack direct overseas investment channels.

5. Considering Currency Risk

For non-U.S. dollar investors, fluctuations in exchange rates may impact final investment returns. Specifically, if the U.S. dollar depreciates relative to the investor's domestic currency, actual returns, when converted back to the domestic currency, may decrease despite positive yields from Treasury securities.

6. Adopting a Long-Term Investment Perspective

U.S. Treasury securities are considered an excellent choice for long-term investment. While short-term volatility may occur, Treasury securities generally provide stable returns and lower risk over the long term.

Risk Considerations

Despite being perceived as highly secure investments, investors should remain cognizant of the following potential risks:

• Interest Rate Risk Changes in market interest rates may lead to fluctuations in the prices of Treasury securities.
• Credit Risk Although the likelihood of default on U.S. Treasury securities is exceedingly low, it theoretically exists.
• Currency Risk For non-U.S. dollar investors, exchange rate movements may influence investment returns.
• Inflation Risk The real returns on long-term securities may be eroded by inflation.

Investment Pathways

Investors can purchase U.S. Treasuries through the uSMART HK app, which offers several advantages for subscribing to U.S. Treasuries:

1. Low Entry Threshold: There is no income verification, with a minimum investment of $800.
2. Diverse Offerings: Options include short-term, medium-term, and long-term bonds.
3. Convenient Investment: There is no lock-up period with attractive returns.
4. High Security: There is a significant degree of safety with a favorable risk-return profile.