Government Bonds

Definition

Government bonds are debt securities issued by a government to raise funds for public projects or government expenditures. These bonds pay interest over a specific period of time and are considered low-risk investments.

Related terms

Treasury Bills (T-Bills): This term refers to short-term government securities with maturities of one year or less.

Yield Curve: This term refers to a graphical representation of yields on similar debt instruments (like Treasury bonds) plotted against their respective maturities.

Quantitative Easing: This term refers to a monetary policy tool used by central banks, such as the Federal Reserve, where they purchase large quantities of financial assets (including government bonds) in order to increase money supply and stimulate economic growth.