Government Bond (Noun)
Meaning
A bond that is an IOU of the United States Treasury; considered the safest security in the investment world.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The investor decided to diversify her portfolio by purchasing a government bond, which offered a low but guaranteed return.
- Government bonds are often used as a benchmark for other investments because of their extremely low risk.
- The central bank bought up a large number of government bonds to inject liquidity into the struggling economy.
- As a conservative investor, John only considered putting his money into a government bond or a high-yield savings account.
- The yield on the 10-year government bond fell sharply as investors sought out safer assets amidst the global financial turmoil.