Debt securities issued by a national government to finance its expenditures.
Government bonds represent a loan made by an investor to a government. They are typically considered among the safest investments due to the backing of the issuing government. Bonds have a maturity date, a face value, and typically pay periodic interest payments known as coupons. The yield on a government bond is influenced by factors such as inflation expectations, monetary policy, and the creditworthiness of the issuing nation.