When interest rates go up, bond prices decline.  So, a $1,000 bond can be bought for $900, and the lower interest it pays is compensated by the eventual gain of $100 when it matures.  That $100 has nothing to do with whether it is federal or corporate interest, and on the 1040 it doesn't make any difference where it gets reported.  (Well, I suppose it would be to the taxpayer's advantage to put it on Schedule D, if there were carryover losses to offset it.  I think actually you can do that, if you elect not to amortize the discount over the entire holding period.  I think I once had a client who elected to do that, a former stockbroker who then went to law school.)  

What happens with municipal bonds?  As I recall, if you sell them at a loss before maturity, you can't claim it, but if you buy them at a discount and hold them to maturity, that gain is considered municipal interest.  And if you buy them at a premium and hold them to maturity, you can't claim the loss or reduce your interest income.  By analogy, maybe that's what some people want to do with Treasury bonds.  But I don't think trading profits are the same as interest.  

Baird has a good discussion of some of these issues at 

https://www.bairdwealth.com/globalassets/pdfs/help/tax-treatment-bond-premium-and-discount.pdf