U.S. Treasury securities have zero default and market risk, but are subject, like all other securities, to inflation risk.

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U.S. Treasury securities are considered to have virtually no default risk because they are backed by the full faith and credit of the U.S. government. However, they do have market risk, as their prices can fluctuate in the market. They are also subject to inflation risk, which can erode the real value of the fixed interest payments.

US Treasury Securities Have Zero Default and Market Risk, but Are