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

see GILT EDGED SECURITY, BOND.
References in periodicals archive ?
Under such circumstances, there have been claims that "if the BOJ buys up all of the government bonds, fiscal restructuring will end with no fiscal burdens on the Japanese people", but the important message from economics is that "there is no free lunch", and this claim is false.
Fears of similar upsets appear to be holding back investment flows into government bonds, while thirst for income has boosted other fixed income assets such as credit," Turnill explains.
Outstanding government bonds 1 stood at 120,462 million in August 2016, this is a decrease of 37 million from last month.
That is, the trade portfolios of government bonds that were replenished in the previous quarter were used to
4 percent of overall Japanese government bonds, surpassing bond holdings by domestic banks that accounted for 14.
The IMF has issued a warning about increasing Japanese government bond risk in the domestic banking system in Japan.
Citi announced that the South African Government Bond Index has become eligible for inclusion in its World Government Bond Index (WGBI).
99% for the previous issuance of 30-year government bonds.
Last week the ECB said that it had settled EUR711m in purchases of euro-zone government bonds.
In the 5-year government bond auction, the Treasury sold nominal 892.
The combined government bond and cash holdings of these institutions still represents 30 percent of their assets, or some [euro]500 billion (USD$651 billion)," says McNickle.
A dealer said the bond market's reaction on the extra budget will be small unless details of the second extra budget becomes clear or the government decides to increase sharply the issuance of government bonds to finance the second extra budget.

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