US Treasure Bond and Government Bond Funds These funds invest in securities issued by the United States Treasury or agencies of the U.S. Government. Funds that invest exclusively in U.S. Treasury obligations are known as U.S. Treasury bond funds. Funds that invest in other U.S. Government securities in addition to U.S. Treasury securities are called U.S. Government bond funds. These securities are obligations of the U.S. Treasury and Government and are considered to be of unparalleled credit quality. Even these funds, however, are subject to interest rate risk, such that their net asset values will fluctuate commensurate with their maturity levels. Some funds may vary their maturity levels depending on the investment adviser's outlook for interest rates; other funds confine their investments to a particular maturity level.