Government bond

(redirected from Government bonds)
Also found in: Dictionary, Thesaurus.
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 ?
It's learnt that OTC local government bonds are based on public credit and therefore enjoy the advantages of high safety, sound liquidity, low threshold for investment and trading and exemption from income tax and value-added tax for interest income.
Those designated as primary dealers have exclusive rights to purchase government bonds. Ten brokerages including Samsung Securities and seven banks are designated as primary dealers.
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.
Turnill says this is a "timely reminder to diversify equity risk via an allocation to government bonds."
of both the portfolios stopped, as the growth of credit exposures fell from 3.3% to 0.6% and investments in government bonds fell 2%
Banks in Japan have reduced their government bond holdings by 24 percent over the March to August period, driven by Bank of Japan's aggressive monetary easing measures.
The BOJ's government bond holdings accounted for 15.4 percent of overall Japanese government bonds, surpassing bond holdings by domestic banks that accounted for 14.2 percent.
Citi announced that the South African Government Bond Index has become eligible for inclusion in its World Government Bond Index (WGBI).
Due to the strong demand, interest rate of the winning bids dropped to 1.9% per annum, down from 1.99% for the previous issuance of 30-year government bonds.
In order to boost the primary market for inflation-indexed bonds, primary dealers, who are the market makers of government bonds, will be required to offer sales and purchase prices of inflation-indexed bonds.
The bank has resumed purchasing government bonds after holding back for three weeks.

Full browser ?