Government bond

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Government bond

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Government Bond

Any bond issued by an agency of the United States government. Government bonds are backed by the full faith and credit of the government and are considered risk-free. Most are negotiable, with prominent examples being Treasury securities or Ginnie Mae bonds. U.S. savings bonds, however, are not negotiable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Government bond.

The term government bond is used to describe the debt securities issued by the federal government, such as US Treasury bills, notes, and bonds. They're also known as government obligations.

You can buy and sell these issues directly using a Treasury Direct account or through a broker.

Treasurys are backed by the full faith and credit of the US government, and the interest they pay is exempt from state and local, though not federal, income taxes. The cash raised by the sale of Treasurys is used to finance a variety of government activities.

Debt instruments issued by government agencies are also described as government bonds, or government securities, though they are not backed by the government's ability to collect taxes to pay them off.

For example, bonds issued by the Government National Mortgage Association (Ginnie Mae) and the Tennessee Valley Authority (TVA) are government bonds.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

government bond

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
This balance sheet has cash of 100 (= BOJ notes circulating in the market), government deposits of 50, reserves of 350 on the liability side, and the total 500 is supporting the government bonds of 500 on the asset side.
The contractionary effect of the oil price increases ushered in a period of sizable government deficits, which resulted in a buildup in the outstanding stock of Japanese government bonds. Outstanding government debt rose as a percentage of GNP from 5 percent in the early 1970s to 40 percent in the early 1980s.
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Takenaka did not elaborate the idea, but he was believed thinking of government bonds similar to convertible bonds issued by private corporations.
In its program announced last Thursday, the BOJ plans to buy a total of 6.2 trillion yen worth of government bonds with maturities of over five years in five rounds of market operations this month, kicking off its asset buying binge to achieve a 2 percent inflation target in two years.
The South African Government Bond Index has been included in the Citi World Government Bond Index (WGBI).
As of Friday, the central bank's government bond holdings came to 80.97 trillion yen, surpassing the amount of outstanding BOJ notes at 80.79 trillion yen, the bank said.
The yield on the benchmark 10-year Japanese government bond rose Friday morning as demand for safe-haven government bonds waned following the weakening of the yen against the U.S.
The bank said that Greek government bonds would be removed from the World Government Bond Index, the EMU Government Bond Index and the World Broad Investment-Grade Bond Index by the end of June.

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