Government Bonds in the news

(AFX UK Focus) 2007-01-15 16:39 GMT: European government bonds remain firm in US holiday-trimmed trade 

- Govenment Bonds

Here is an article on Government Bonds.

Securities Securities Bond Commercial paper Hybrid security Stock Warrant Markets Bond Goverment Bonds market Stock market Stock exchange Foreign Exchange Stocks Share Stock Warrant Bonds by Govenment Bonds coupon Fixed rate bond Floating rate note Zero Governemnt Bonds coupon bond Inflation-indexed bond Bonds by collateral Asset-backed security Collateralized debt obligation Collateralized Governmet Bonds mortgage obligation Credit linked note Mortgage-backed security Structured Givernment Bonds finance Unsecured bond Bonds by issuer Corporate bond Government bond Municipal bond Sovereign bond A government bond is Govenrment Bonds a bond issued by Governmetn Bonds a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally Governent Bonds referred to as sovereign Overnment Bonds bonds. Contents 1 Risk 2 Issuance 3 See also 4 List of government bonds from the main issuers 5 Asia 5.1  Japan (AA-/A2) 6 Europe 6.1 Eurozone 6.1.1  France (AAA/Aaa) 6.1.2  Germany (AAA/Aaa) 6.1.3  Italy (A+/Aa2) 6.2  United Kingdom (AAA/Aaa) 7 North America 7.1  United States (AAA/Aaa) Risk 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. Some counterexamples do exist where a government has defaulted on its domestic currency debt, such as Russia in 1998- the "rouble 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. 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 Treasuries would have received lower returns in 2004 because the value of the US dollar declined against most other currencies). Secondly, there is inflation risk - 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. An example of somewhat risky bonds issued by a government can be given with countries that have less than perfect capabilities of conducting financial policies. Such an example is Bulgaria due to its being dependent on the world economy and economic institutions much more than, say, the US. Some of this country's bonds were only given an A-scale rating after 2004. As of February 2006 Standard & Poor's rates Bulgaria's long-term debt denominated in domestic currency at BBB+. And this rating is the result of almost a decade of constantly decreasing risk (and increasing ratings). We should also note that this country's short-term debt is in fact currently rated A. Issuance Government bonds are issued through agencies that are part of the government's treasury department, for example Bunds are bonds issued by the German Finance Agency, denominated in euros Gilts are bonds issued by the UK Debt Management Office and are denominated in sterling US Treasuries are issued by the Bureau of the Public Debt See also Government debt List of government bonds List of government bonds from the main issuers for a comprehensive list of government bonds, see List of government bonds Currency Country Generic Name or Nickname Rating (S&P/Moody's) Negociable debt at mid-2005 (US dollar bn equivalent) Government financial liabilities as % of GDP (end 2003 - source : OECD) Issuer Internet site Yen  Japan JGBs AA-/A2 6,666 157.5% Ministry of Finance (MoF) Site US dollar  United States US Treasuries AAA/Aaa 4,000 62.5% Bureau of the Public Debt Site Euro  Italy BTPs A+/Aa2 1,530 120.9% Dipartimento del Tesoro Site Euro  France OATs AAA/Aaa 1,300 71.2% Agence France Trésor Site Euro  Germany Bunds AAA/Aaa 1,020 65.1% Finanzagentur GmbH Site Pound sterling  United Kingdom Gilts AAA/Aaa 703 42.0% UK Debt Management Office Site Main credit ratings Asia  Japan (AA-/A2) Issued By: Ministry of Finance (MoF) Japanese Government Bonds (JGBs) Revenue Bonds/Straight Bonds Financing Bills Subsidy Bonds Subscription Bonds Contribution Bonds Demand Bonds (kofu kokusai) Ministry of Finance Europe Eurozone  France (AAA/Aaa) Issued By: Agence France Trésor, the French Debt Agency OATs BTFs - bills BTANs - 1 to 6 year notes Obligations assimilables du Trésor (OATs) - TEC10 OATs - floating rate bonds indexed on constant 10year maturity OAT yields OATi - French inflation-indexed bonds OAT€i - Eurozone inflation-indexed bonds Agence France Trésor  Germany (AAA/Aaa) Issued By: Finanzagentur GmbH, the German Finance Agency Bunds Bubill - bills Bundesschatzanweisungen (Schätze) - 2 year notes Bundesobligationen (Bobls) - 5 year notes Bundesanleihen (Bunds) - bonds Finanzagentur GmbH  Italy (A+/Aa2) Issued By: Dipartimento del Tesoro BTPs Buoni Ordinari del Tesoro (BOTs) - bills up to 1 year Certificati del Tesoro Zero Coupon (CTZ) - bills up to 2 year Buoni del Tesoro Poliannuali (BTPs) - bonds Certificati di Credito del Tesoro (CCTs) - floating rate notes BTP Indicizzato all'Inflazione - inflation linked bonds Dipartimento del Tesoro  United Kingdom (AAA/Aaa) Issued By: UK Debt Management Office Gilts Conventional Gilts Index-linked Gilts Double-Dated Gilts Undated Gilts Gilt Strips UK Debt Management Office North America  United States (AAA/Aaa) Issued By: Bureau of the Public Debt US Treasuries Treasury bill Treasury note Treasury bond TIPS Savings bond Bureau of the Public Debt Search Term: "Government_bond" Categories: Bonds | Government debt