Investments in United States treasury bonds are limited to ______.

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Maturity limits and liquidity management drive how a treasurer’s funds are invested in U.S. Treasury securities. Limiting investments to maturities of one year keeps assets highly liquid and reduces interest-rate risk, since funds can be readily rolled over or used to meet near-term obligations. Treasury securities with longer maturities tie up principal longer and expose the portfolio to greater price fluctuations if rates rise, which is not desirable for funds that need prompt access to cash. So the policy sets a one-year limit for these investments, ensuring they remain a safe, readily available source of cash. Longer-term options would not fit the goal of maintaining liquidity and minimizing risk for short-term cash needs.