Which bond tends to have the longest duration until maturity?

The bond that tends to have the longest duration until maturity is U.S. Treasury bonds. Treasury bonds have maturities ranging from 10 to 30 years, making them long-term investments. The longer the maturity of a bond, the more sensitive it is to interest rate changes, which is a key factor in determining duration.

Duration is a measure of a bond's interest rate risk, representing the time it takes for the bond's cash flows to repay the investor. Longer-duration bonds like U.S. Treasury bonds carry additional interest rate risk, meaning that fluctuations in market interest rates can have a more pronounced effect on the bond's price. In contrast, U.S. Treasury bills are short-term instruments with maturities of one year or less and therefore have very short durations. U.S. Treasury notes, typically having maturities of 2 to 10 years, have durations that are longer than Treasury bills but shorter than Treasury bonds. Certain corporate bonds can vary widely in their maturities and durations as well, but on average, U.S. Treasury bonds are known for their extended duration compared to the other options listed.

Thus, the combination of long maturities associated with U.S. Treasury bonds and their characteristics makes them the type of bond that typically has