Skip to main content
government bond

government bond

14 2.7
A loan to a government that pays interest over time and is usually safe
  • noun
  • /ˈɡʌvərnmənt bɑnd/
  • Specialized
translation icon : bono del Estado
  • Investors often turn to government bonds for a safe place to put their money.
  • invested in government bonds
  • selling government bonds
  • purchase government bonds

The only thing you could call risk free is the government's bond of the United States Treasuries.

Autoplay Next

Examples

  • Currently, these trust funds are used to purchase government bonds.

    Academic text (2007)
  • Yields in Irish government bonds have more than halved since last July.

  • Thank God for government bonds.

  • You want us to sit on six hundred million dollars' worth of French government bonds?!

    Fiction book (1990)
  • But Thursday, France and Spain had successful government bond sales with lower interest rates.

    Blog text (17)
  • The Fed is propping up the prices of government bonds to lower the funding cost of the government.

    Blog text (24)
  • Since the banks were heavily invested in government bonds, the declining value of those bonds hurt the banks.

    Academic text (2012)
  • Every additional unit of demand for government bonds invariably lowers interest rates.

    Blog text (9)
  • Still other funds invest predominantly in securities that generate income, namely debt securities, such as corporate and government bonds.

    Academic text (2018)
  • Instead, one third of those surveyed cited low-yielding certificates of deposit, savings accounts, and government bonds.

    Academic text (2002)

Synonyms

Treasury
vsgovernment bond
  • Specialized
32 6.9

A United States government bond sold to investors that pays interest and returns the money later

is the broader state-issued loan category not only US negotiable debt
Treasury bond
vsgovernment bond
  • Specialized
10 4.9

A long loan to the U.S. government for ten years or more that pays interest

is the wider state loan type that also includes shorter maturities
municipal bond
vsgovernment bond
  • Specialized
10 4.4

A loan a city or state sells to pay for public projects, often free from federal taxes

is the broad state loan usually issued by national authorities
savings bond
vsgovernment bond
  • Specialized
5 3.1

A government certificate you buy to save money and earn interest that you cannot sell

is a standard state loan instrument that is transferable and market traded
Treasury bill
vsgovernment bond
  • Specialized
4 4.6

A short-term government loan sold for less than its value and repaid at full value without interest

is the general state loan usually paid with interest rather than discount sales
Treasury note
vsgovernment bond
  • Specialized
3 6.5

A loan to the government that pays interest and is repaid in one to ten years

is the wider state loan that also covers short and long terms
revenue bond
vsgovernment bond
  • Specialized
2 5.3

A way to raise money for a public project paid back from the money the project earns

is the general state loan normally repaid from taxes or general funds
government security
vsgovernment bond
  • Specialized
1 4.0

A bond or note that a government sells to borrow money

is the specific loan instrument typically seen as very safe
coupon bond
vsgovernment bond
  • Specialized
1 7.9

A bond where you give paper coupons to get interest payments

is the usual state loan now more often paid electronically than by coupons
Treasury obligations
vsgovernment bond
  • Specialized
6.4

Debt the United States government borrows by selling bonds that it pays back with interest

is the general state loan category not limited to negotiable obligations
Premium Bond
vsgovernment bond
  • UK
6.8

A government savings plan that pays no interest but gives a chance to win money in monthly draws

is a conventional state loan that pays interest instead of prizes
utility bond
vsgovernment bond
  • Specialized
6.1

Money a government or city borrows to pay for public services like water and electricity

is a wider state loan that can fund many public services beyond utilities
municipal note
vsgovernment bond
  • Specialized
8.2

A short-term loan a local government sells to raise money

is a general state loan type that often lasts longer than two years

How Safe

Treasury bond
  • Specialized
10 4.9
government bond
  • Specialized
14 2.7
municipal bond
  • Specialized
10 4.4
junk bond
  • Specialized
33 7.0

Surface Forms

Morphology

government + bond

The meaning 'a debt/security issued by the government' is directly derivable from the modifier–noun composition: 'government' specifies the issuer and 'bond' denotes a debt instrument. This is a common, literal compound found across languages and uses frequent, transparent constituents, so a B1 learner who knows both words can infer the MWE meaning.

Etymology

Government bond comes from the simple image of a government giving a written promise called a bond, like an IOU, to people who lend it money. So a government bond is 'a loan' to the government and that is why many people see it as 'safe'.