GOVERNMENT BOND

Debt security issued by the government to sustain government expenditure. Most frequently issued in the country’s domestic currency, it is a money owed by any level of government and guaranteed by the government’s full faith. In the United States, it includes savings bond, Treasury bond, and Treasury inflation-protected securities (TIPS), among others. Investors need to evaluate several risks associated with the country before investing in government bonds. Risks include country, political, inflation, and interest rate.