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
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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.

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