- Government bond
A government bond is a bond issued by a national government denominated in the country's own
currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The first ever government bond was issued by the British government in 1693 to raise money to fund a war against France. It was in the form of a tontine.
Government bonds are usually referred to as
risk-free bonds, because the government can raise taxes or simply print more money to redeem the bond at maturity.Fact|date=July 2008 Some counter examples do exist where a government has defaulted on its domestic currency debt, such as Russiain 1998 (the "ruble crisis"), though this is very rare.
As an example, in the US, Treasury securities are denominated in
US dollars and are the safest US dollar investments.fact In this instance, the term "risk-free" means free of credit risk. However, other risks still exist, such as currency risk for foreign investors (for example non-US investors of US Treasury securities would have received lower returns in 2004 because the value of the US dollar declined against most other currencies). Secondly, there is inflationrisk, in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. Many governments issue inflation-indexed bonds, which protect investors against inflation risk.
List of government bonds
* [http://www.ofterms.com/definition/government-bond.php Government bonds explained in simple terms]
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Government bond — See: Government securities. The New York Times Financial Glossary * * * government bond government bond ➔ bond * * * government bond UK US noun [C] GOVERNMENT, FINANCE ► an amount of money borrowed by a government, or the official document re … Financial and business terms
government bond — See: government securities * * * government bond government bond ➔ bond * * * government bond UK US noun [C] GOVERNMENT, FINANCE ► an amount of money borrowed by a government, or the official document relating to this: »We invested the extra… … Financial and business terms
government bond — noun a bond that is an IOU of the United States Treasury; considered the safest security in the investment world • Hypernyms: ↑bond, ↑bond certificate • Hyponyms: ↑savings bond, ↑Treasury, ↑Treasury obligations * * * government bond … Useful english dictionary
government bond — bond issued by a national government … English contemporary dictionary
Government Bond — A debt security issued by a government to support government spending, most often issued in the country s domestic currency. Government debt is money owed by any level of government and is backed by the full faith of the government. Federal… … Investment dictionary
government bond — A United States bond. A contract which imports a loan of money by an individual to the government at a stipulated rate of interest, payable at a designated time and place. New York Life Ins. & Trust Co. v Baker, 165 NY 484, 59 NE 257 … Ballentine's law dictionary
Access Bank Nigerian Government Bond Index — The Access Bank Nigerian Government Bond Index is a liquid index that was created to ensure that there exists credible data on the Nigerian sovereign bond market which will help the investors and other stakeholders to make informed investment… … Wikipedia
Salomon Smith Barney World Government Bond Index — The Salomon Smith Barney World Government Bond Index is a market capitalization weighted bond index consisting of the government bond markets of the following countries: *Australia *Austria *Belgium *Canada *Denmark *Finland *France *Germany… … Wikipedia
Japanese Government Bond (JGB) — Государственные облигации Японии Словарь терминов и сокращений рынка forex, Forex EuroClub … Финансовый словарь
Japanese Government Bond future — JGB future LIFFE Future contract based on notional Japanese Government Bond with a 6% coupon and a ten year maturity. LIFFE … Financial and business terms