Government bond

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Government bond

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.

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.

government bond

References in periodicals archive ?
One of the large factors behind this is the Bank of Japan (BOJ) keeping national bond yields at an extremely low standard, having bought massive amounts of government bonds through a "different dimension" monetary policy.
Traditionally, syndicate members purchased newly issued government bonds with the understanding that the debt could later be sold to the Bank of Japan at a price that would ensure the avoidance of losses on the original bond purchase.
Takenaka did not elaborate the idea, but he was believed thinking of government bonds similar to convertible bonds issued by private corporations.
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 short term government bond is similar in function to the Central Bank s bonds by working as basic assets in the execution of a monetary policy.
The Bank of Japan said Tuesday its holdings of long-term Japanese government bonds topped the amount of outstanding BOJ notes for the first time due mainly to bond-buying as a part of its easy money policy.
Although the practice has never been implemented in the postwar era, the rule is acting as a drag on government bond purchases by investors, especially for investors from overseas.
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.

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