Government bond

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Related to Government bonds: Corporate bonds, Treasury bonds, Municipal bonds

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

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42 percent, Distribution policy: distributing, Benchmark: BofA Merrill Lynch 0-5 Year EM USD Government Bond ex-144a Index.
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99% for the previous issuance of 30-year government bonds.
As a result, yields on 10-year government bonds shot up 120 basis points in two spikes over just six weeks, peaking at 2.
President Clinton announced the creation of a new government bond Wednesday that will guarantee investors an annual profit regardless of rising consumer prices.
Too, government bonds are exempt from state tax, so they make more sense for someone who lives in a state with high income taxes.
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.
A heated debate regarding local government bonds has developed.
According to Mongolian government officials, the release of Government Bonds will play a significant role in the short term plan to resolve existing budget-related issues and the long term plans to fund some projects and programs to reduce their bond risks and, mainly to develop the government bond marketing as well as bond trading.
There are 12 South African government bonds in the index, with a market value of USD93.

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