Questions tagged [government-bonds]

for questions that relate to government bonds. It is recommend you use a country tag or state what country you are referring to. A government bond is a bond issued by a national government, generally promising to pay a certain amount on a certain date, as well as periodic interest payments.

A government bond is a bond issued by a national government, generally promising to pay a certain amount (the face value) on a certain date, as well as periodic interest payments. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country. Government bonds are usually denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds, although the term "sovereign bond" may also refer to bonds issued in a country's own currency.

Government bond - From Wikipedia

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What does "Yield Curve" mean?

In the financial news we often read about the Yield Curve. What exactly is it?
JoeTaxpayer
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Why would I buy a Bond at a Negative Interest rate?

I read that France is selling bonds at Negative Interest Rates, and more recently Germany Started in 2016. I understand why this is beneficial for France, but why in the world would I pay money to let someone hold my money? Thanks for the update…
C. Ross
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Why invest in long term government bonds when the yield curve is inverting?

The New York Times has noted that the US is heading toward an inverted yield curve, which is one of the precursors for a recession. The yield curve is said to be inverted when long term government bonds pay less interest than short term ones. I'm…
JoJo
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Bought agency bond (FANNIE MAE 0% 04/08/2027), now what?

I just bought 15 of these for $10,677 through my brokerage firm. It says 3.3% interest. I have no idea how this works. But I trust it is gov bond and will pay 3.3%. Can anyone explain how it works? Will it pay interest annually or every 6…
Tony
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Why would anyone buy a government bond?

In my country, the interest rates on government bonds are currently 2 - 3%, but I have money in a term deposit at the bank which earns 4% interest. I don't understand how this can be possible. Why are there any buyers of government bonds, either…
Flounderer
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How do you short US Treasuries?

As the US government continues to issue record levels of debt, I don't think it can continue to sell that debt at 2 - 3% interest. It will face the simple supply/demand law of economics — the more supply of an item, the less valuable each item is…
Muro
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How Is There A Yield Curve For Treasuries?

Why would anyone buy a 1 yr T-Bill with a return of 1.25% when you get double that on a 30-year T-Bond? Where is the risk and/or liquidity premium coming from? There's a highly liquid, secondary market where you can exit a position at any time,…
EricP
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Did Greece really issue bonds to investors yielding 42% interest?

I read this in the news regarding Greece's financial crisis: The country’s 10-year bond yield fell 11 basis points to 8.04 percent at 12:26 p.m. in Athens today. While that’s down from a record of 42 percent on the eve of the biggest debt…
user640916
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Is my back-of-the-envelope calculation about taking out a loan to invest into the markets flawed?

With the recent economic struggles due to the Covid-19 pandemic the stock market seems to be even more interesting for personal investments. Taking out a loan might be one of the ways to gather or boost the available assets. I did a quick…
pat3d3r
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For an investor, what's the appropriate response to the U.S. Debt downgrade?

So the S&P has downgraded United States debt from it's AAA status. There have been other threads discussing why/when a downgrade will happen, as well as possibility of default. Instead, I want to know - where do we go from here? How should the…
BlackJack
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What is the rationale behind stock markets retreating due to S&P having a negative outlook on the USA?

From a Bloomberg article published on 18/4/2011 Standard & Poor’s put a “negative” outlook on the AAA credit rating of the U.S., citing a “material risk” the nation’s leaders will fail to deal with rising budget deficits and debt. Many of the…
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Why does this 4-week Treasury bill that I bought have a 17-week term and a much earlier issue date?

I submitted an order on Fidelity to purchase a newly issued 4-week t-bill. The order went through and I got a t-bill that matures in 4 weeks. However, after looking it up by CUSIP on treasurydirect.gov (link), I noticed that it was issued a few…
A. Shultz
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Why does the yield on SHY (US treasury bond ETF) seem so bad?

With the US interest rate increasing so much lately, I am interested in putting some more of my money into US treasury bonds. I am looking at the SHY ETF on Fidelity, which is an ETF comprising short-term (1-3 year) treasury bonds. Now, I am far…
Time4Tea
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Why did one-year notes pay more than 10-year notes during the 1980's crisis?

Why did one-year notes pay more than 10-year notes during the 1980's crisis? During the early 1980's, one-year T notes paid more than the 10-year T note, which implies that nobody wanted to buy the short-term bonds. Instead, they wanted to fix their…
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Do bonds become more valuable right before a coupon payment?

I'm learning about fixed income for the first time and my understanding is that the value of a bond depends on three major variables: The face value The time to maturity The coupon rate a.k.a. the interest rate paid semi-annually or…
Paul Razvan Berg
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