government bonds

Stocks offer some safety. "If I could choose cash, government bonds or stocks, for the long term, I'd take stocks. " Faber said.

Market makers in eurozone government bonds said the market was no longer functioning for the weaker economies of Portugal, Spain and Greece.

Then the Bank of England sprang to the rescue, announcing that it would spend tens of billions of pounds acquiring government bonds.

Government bonds which had been considered riskless turned out to carry significant credit risks.

There have been reports that Germany is considering buying Greek government bonds through a state-owned bank, as an emergency measure.

Why should it be so easy to fund such huge fiscal deficits even after central banks have stopped their buying of government bonds?

The main requirement for new banks was that they post collateral of government bonds equal in value to the notes to be issued.

Private creditors, 'who make a lot of money on some government bonds, ' will have to share more of the risk going forward, she said.

In the festive spirit, I had a look to see if anything actually went up in value this year apart from government bonds.

Government bonds are not the only assets on which foreign banks could lose money in Greece.

People generally do not fall in love with government bonds, and Treasuries have no other use to compensate for a fall in value.

Currencies and government bonds, among the main asset classes, have always been traded without the aid of an exchange.

That would be enough to restore it to profitability if there were no further write-downs on its holdings of Greek government bonds.

The unpopular government is bracing for collapse, and on Tuesday, Irish government bonds continued a week-long slide to a fresh record low.

If it has any impact at all, it will merely make it harder to sell government bonds.

In the U. K. , the Bank of England would step in as a buyer of government bonds.

Recent reports of a small purchase of Japanese government bonds by the Chinese government were enough to power it to a new high.

From now on, be able to keep up-to-deposit the money or buy government bonds or dual-currency deposits to buy.

Mr Wen also said he was worried about the safety of the huge amount of China's foreign exchange reserves invested in US government bonds.

Indeed, the public's rush into inflation-protected government bonds may be a harbinger of a future rise in inflation expectations.

As Lewis says: 'Massive ECB buying of government bonds unwanted by private investors would be an obvious case of monetizing the debt.

"What else can I do, " said the boss of a big Italian bank, in relation to its large holdings of Italian government bonds.

It costs twice as much to insure British government bonds against default as it does German or French bonds.

Rising equities were joined by surging commodities and sell-offs for government bonds and the dollar, as money came out of safe havens.

Technically, the EFSF monoline insurer would provide a first-loss tranche insurance for government bonds up to an agreed percentage.

They do so by buying assets, typically government bonds, known as "gilts" , from banks or other financial institutions.

Much of it has also been poorly invested, in everything from American subprime bonds to Greek government bonds.

After the Bank of Spain's intervention, yields on Spanish government bonds rose, making it more expensive to finance public borrowing.

Neither bank's balance-sheet is shrinking , although they do both have more safe assets like government bonds than a year ago .

All this suggests that an essential part of shoring up Europe's banks is to restore faith in government bonds.

For a few weeks in the summer foreign lenders did not want to lend to them, even using Spanish government bonds as collateral.

In a single, memorable autumn, however, eight years of excess returns by risk assets over government bonds were eviscerated.

The assumption that euro-zone government bonds were almost interchangeable and none could default steadily began to crumble.

For now, Japan has no trouble raising funds to meet its debts, and interest rates on government bonds are barely above 1%.

At the end of 2008 domestic investors held 94% of Japanese government bonds, perhaps reflecting the risk-averse nature of Japanese society.

This would underline the point to both banks and investors that government bonds are not automatically "risk-free. "

In countries where there is likely to be a surplus of government bonds for sale, there is little public discussion at all.

They would also be able to absorb losses on their holdings of Irish and Portuguese government bonds.

As the Bank of England showed last week, most central banks go for government bonds.

Some of it needs to be two-year money, which will be in government bonds.

The Bank of England essentially printed money when it bought swaths of government bonds.

S. government bonds during the war, they also lent large amounts of money to individuals engaged in stock market speculation.

As their savings rise, the excess must be exported, often in the form of central bank purchases of U. S. government bonds.

On Wall Street, stocks ended lower while prices for long-dated government bonds rallied. The U. S. dollar strengthened against the euro.

Governments too, are using the banks to trawl for investors prepared to inject funds into fixed-income and floating-rate government bonds.

So experience suggests that the carry trade, as applied to government bonds, is not a particularly appealing strategy.

The supply of cheap funding has created useful demand by commercial banks for government bonds, just as fiscal deficits are rising.

Wall Street will tell you that government bonds issued by advanced Western countries are the safest investments money can buy.

Irish government bonds are likely to comprise a large part of the total, although no details are given.

In Britain and America the dividend yield is now well above the yield on government bonds, something not seen since the 1950s.

Already trying to consume fewer US government bonds, Beijing's loss of appetite is set to accelerate in coming years.

Buyers of Spanish government bonds, spooked by the prospect of a Greek default, have already demanded higher interest rates from Madrid.

In this downturn only government bonds and cash have yielded real diversification benefits among the main asset classes.

Sterling and gilt-edged government bonds strengthened a bit; the credit-rating agencies expressed renewed confidence.

'It was a wake-up call for the industry, ' said a top French bank executive, who soon started dumping his Italian government bonds.

Government bonds are usually referred to as risk-free bonds.

The US debt pyramid is bound to collapse when its financers are no longer willing to risk their capital on insecure government bonds.

"The solution has to be a euro devaluation through the ECB purchasing peripheral euro zone government bonds, " said Tullett's Komileva.

History suggests that such a combination should be bad news for government bonds.

Corporate bonds offer an alternative to equities and government bonds, providing some of the benefits of each.

Some analysts predict the bank might buy more government bonds if yields start to rise.

He thought that the dividend yield on American and European equities would eventually exceed the yield on government bonds.

Since U. S. government bonds are among the safest in world, they almost always have lower yields than other bonds of the same maturity.

They havegrown in a time of low interest rates and narrow credit-spreads (an extra yieldover government bonds to offset risk).

and said it would reinvest the proceeds from the maturing mortgage securities it owns in government bonds.

The cost of insuring its government bonds against default has soared tenfold since the financial crisis started brewing in 2007.

In a next step, you could buy longer-dated government bonds, which would reduce long-term interest rates.

The hard-liners argue that if Americans buy government bonds, their own spending and savings must fall by an equal amount.

In fact, an asset swap from gold to Zimbabwean government bonds would mean a strong deterioration of the quality of the dollar.

Within minutes of the market opening there was a fully fledged run on Italian government bonds.

Diversification makes as much sense for the manager as for the investor who spreads his capital between shares and government bonds.

The European Central Bank began buying government bonds days after insisting it would not.

It signaled its displeasure with Japanese imprisonment of a Chinese fishing-boat captain by selling off Japanese government bonds.

The beauty of this outcome would be that the ECB would not have to buy government bonds any more.

To lower long-term interest rates, the Bank of England has been buying government bonds.

In the 1980s, as the United States is preparing to use auction in the process of sales of government bonds, which led to an upsurge study.

Fears of a weak government could spark selling of the pound and push down prices of government bonds and smaller U. K. stocks.

That the ECB has not purchased government bonds is in line with this institutional framework.

Most of it is funded through domestic, not foreign, debt and controls on capital outflows ensure that domestic savers buy government bonds.

Government Bonds - Bonds issued by the government and sold by the Fed during open market operations as a means of monetary policy.

It had already crossed the Rubicon of principle in May 2010, when it started to buy Greek government bonds in the secondary market.

Government bonds are usually considered to be a safe investment.

Yields rose on Irish government bonds ahead of talks in Dublin about a possible bail-out of Ireland's debt-laden economy.

Commonwealth, State or Territory government bonds are bonds issued by the Commonwealth, or a State or Territory government authority.

The cost of protecting German government bonds against default surged to a fresh record this week.

Markets are finally learning about eurozone government bonds: they are just like any other, only more so.

That reduced incentives for the private sector to hold on to, never mind buy, government bonds in peripheral economies.

This time, government bonds are in a bull market with yields at multi-decade lows, and the CRB commodities index is at 2006 levels.

In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance.

As stocks plummeted this summer, investors shifted a mountain of money from stocks into bank accounts and government bonds.

Already investors have to choose between government bonds of different maturities and between conventional and inflation-linked debt.

The ECB did not provide any more details about its programme to buy eurozone government bonds.

Much of the imbalance in savings between the rich world and the emerging markets is made up by the sale of government bonds.

With no current-account surplus, China would no longer be a net purchaser of US government bonds and other foreign securities.

Unusually, Bundesbank chief Axel Weber has gone public on his disagreement with the European Central Bank policy of buying government bonds.

By contrast, government bonds look extremely overvalued and the outlook for equities is more mixed, following a strong run in September.

Thirdly, Asian central banks hold government bonds as a way of managing their currencies.

To plug the gap, Mr Fujii, the finance minister, said the government may sell more government bonds.

A large volume of new government bonds can be sold to the public only at progressively higher interest rates.

Japanese government bonds, by contrast, have enjoyed one of the biggest bull runs in history.

Investors concerned with avoiding risk will be prepared to accept the relatively low yields now available on government bonds.

The government bonds of Greece, Ireland, Portugal and Spain were all downgraded a notch by credit-rating agencies.

They originally envisioned the EFSF as a way of guaranteeing government bonds.

For years we have been hearing warnings that Japanese-government bonds are going to collapse.

When recession or deflation looms, government bonds are relatively unaffected but equities suffer because profits are likely to fall.

If they were, the interest rate on government bonds would be skyrocketing.

Yet some in his own party have opposed plans to raise money to pay pensions by issuing new government bonds.

The weak krona, meanwhile, has increased the cost of repaying government bonds that were issued in foreign currency.

"The Bank of Japan can buy government bonds on the open market. . . " he wrote in 1998.

Government bonds have been the safe-haven investment in the current environment, particularly the short dated government bonds.

16You may have noticed that corporate bonds come in just ahead of government bonds in terms of low variability.

But the tests didn't measure losses on government bonds that banks plan to hold for the long term.

It may yet buy up government bonds to push down long-term interest rates as well.

Banks are more interested in buying government bonds with capital injections received than in lending to the private sector.

The funds can be invested in United States government bonds or municipal bonds which are exempt from tax.

Local government bonds is the debt to society by the local government as the representative of area residents, to build the local utility.

Amid a more optimistic mood, interest rates on Italian and Spanish government bonds fell sharply and stock markets rallied last week.

Investor panic spread along the Mediterranean, infecting banks and government bonds in Spain and Portugal.

He hopes it will chase investors out of government bonds into corporate bonds and stocks, giving business a lift.

Government bonds were steady, if you picked a country with no trade or fiscal deficits and a high savings rate.

Concerns about Greece, Spain and Italy may have pushed investors into the perceived safety of German and American government bonds.

Low yields on Japanese government bonds encouraged domestic investors to step gingerly back into the market through new investment trusts.

valuable securities denominated in foreign currencies, including government bonds, corporate bonds, and stocks.

In the early stages of the crisis, investors were happy to opt for the safety of government bonds.

Had it downgraded Greece, the country's government bonds would not have been eligible for use as collateral for loans from the ECB.

The scale of such bets was spread across the various derivatives markets that are based on government bonds.

True, it has bought peripheral government bonds, but in pathetic amounts versus the Fed's quantitative easing.

The selloff started last week with a flight from government bonds issued by weaker European states.

Another relatively low-cost option worth considering is an ETF that specializes in foreign government bonds.

The issuing and trading of government bonds shall be separately provided for in laws and administrative regulations.

Investors got assets that yielded more than government bonds and represented claims on a diversified group of borrowers.

Investors scrambled into the havens of US and German government bonds with yields on Treasuries and Bunds dropping to seven-month lows.

Markets expect the ECB, which started buying European government bonds this week, to keep interest rates low for a prolonged period of time.

Government bonds didn't react to inflation data as the market had mostly priced in a sharp fall in the rate.

The RBI could try to offset this by buying government bonds directly, but that might in turn hamper its efforts to support the rupee.

Put simply, investing in Greek, Portuguese, Irish and even Italian government bonds is now a hazardous activity.

Haircuts vary from less than 1% for the safest and most liquid government bonds to 18% for some long-dated asset - backed securities.

The Fed just completed a second round of buying government bonds in hope of providing additional stimulus to the economy.

World stock prices fell on Wednesday after Germany approved new regulations to limit speculative selling of euro-dominated government bonds.

Yet if private funds are invested mainly in government bonds, then pension promises end up being a claim on future taxpayers all the same.

The extraordinary decision by the European Central Bank to purchase government bonds raises the spectre of inflation.

Legislators are also considering the reintroduction of taxes on foreign investors' purchases of local government bonds.

The cost of insuring Indonesian government bonds against default has come down sharply.

The fund believed demand for such government bonds would remain high as investors sought safe returns amid heightened economic uncertainty.

Others point out that it would be far easier to achieve the same effect by urging the central bank to buy more government bonds.

Again, in a still weaker eurozone, investors have run into the safe haven of German government bonds.

Any listed trading of government bonds and share of securities investment funds shall be governed by the present Law.

Thailand on Wednesday introduced a tax on foreign holdings of government bonds, a move designed to curb potentially destabilizing inflows.

Last month, China agreed $20bn worth of deals with France and is considering the possible purchase of Portuguese government bonds.

Last week, when the Treasury tried to auction its most recent issue of government bonds, almost no one was buying.

The gains came as investors awaited the results of a Portuguese sale of government bonds.

Equity and credit markets came under further pressure as investors headed for the perceived safety of government bonds, gold and the dollar.

However, China used the bonds are issued by the central government, for local government bonds is strictly prohibited.

There have been previous examples of investors earning negative real yields on conventional government bonds, particularly in the 1970s.

Foreign banks and pension funds holding weak economies' euro-denominated government bonds would suffer an effective default.

Banks have to hold more government bonds, helping keep borrowing costs down.

Yields on government bonds have fallen: clearly, investors do not yet expect higher premiums for safe American assets.

Yields on government bonds in most rich countries are extremely low as shell-shocked investors clamour for the safety of public debt.

The trajectory of government bonds markets is evermore fascinating; and unnervingly unpredictable.

They may also sell government bonds of peripheral countries, worsening the bond-buyers' strike that afflicts Italy and Spain.

Treasury yields have tumbled as investors have fled to the relative safety of American government bonds.

Mr Draghi led Italy's privatisation programme and fostered a market for longer-dated government bonds, which helped reduce borrowing costs.

Government bonds may be offering "return-free risk" , in the neat phrase of Jim Grant, a veteran newsletter publisher.

The Fed has been buying government bonds in an effort to stimulate the economy by holding down long-term interest rates.

China purchased government bonds of Greek and Spain, and has taken credible steps to support Europe's response to the sovereign debt crisis.

Equally, the ECB could scarcely refuse Greek government bonds as collateral for central-bank money even if they were junk.

This will earn a higher return (the so-called equity-risk premium) than can be got from government bonds or cash.

Spreads measure the extra interest a company must pay above safe government bonds. This is known as the risk premium.

The Germans and others are also right to worry that a central bank that buys boatloads of government bonds will eventually cause inflation.

Any net increase in foreign purchases of euro-denominated local government bonds has an impact far beyond short-term funding.

Open market operations are just that, the buying or selling of Government bonds by the Central Bank in the open market.

The German government moved to ban short-selling of government bonds and some CDS transactions last month.

Recent reports suggest banks would have to tie-up about 10 per cent of total assets in government bonds to comply with the FSA standard.

Mortgage rates have fallen back to historic lows, tracking declines in yields on American government bonds.

That would mean holding interest rates close to zero as well as more imaginative measures such as purchases of government bonds.

The risk premium on Greek government bonds continues to hover around 3 per cent, depriving Greece of much of the benefit of euro membership.

The IMF notes in its latest "Global Financial Stability Report" that some 24% of Japanese banks' assets consist of government bonds.

Bond traders worry the DPJ can't pay for its program without breaking a promise not to issue more government bonds.

Germany is best-placed to use fiscal policy to boost demand, because its government bonds are prized by investors fleeing risky assets.

Trade in government bonds was quiet with some demand from local investors, possibly seeking safety from riskier investments like stocks.

Your smartest bet is to invest in government bonds if you're in a stable developed country.

Government bonds are usually viewed as safe, as they rarely default.

With few other options available, Japanese banks have increased their holdings of Japanese government bonds (JGBs).

Purchasing government bonds, they argue, is tantamount to monetising government deficits.

Clinging to cash equivalents or long-term government bonds at present yields is almost certainly a terrible policy if continued for long.

Yields on the government bonds of the weakest eurozone members have been gingerly tightening in the past few days.

In a deflationary environment, longer-term government bonds tend to do well.

Concerns about Greece, SpainandItalymay have pushed investors into the perceived safety of German and American government bonds.

Historically, safe assets have included Greek government bonds and mortgage-backed securities.

Households produce their own version, liquidating riskier assets (like stock mutual funds) and moving into cash and government bonds.

Banks can tap essentially unlimited loans from the Frankfurt-based ECB, which accepts euro-zone government bonds as collateral.

Meanwhile, government pension funds have more flexibility to invest in other assets besides government bonds.

Central banks hold government bonds as part of their reserves, with Treasury bonds being by far the most popular asset.

Reflecting worries about a disorderly debt default, yields on Greek government bonds leaped to new highs, with two-year paper yielding 29%.

Italy's strongest companies can sell bonds directly, but the rates they pay are also correlated to the yields on government bonds.

To date, the tentative answer has been that the developed world is heading Japan's way as government bonds have far outperformed equities.

And long-term government bonds, while near record lows, are still paying decent money considering the tumultuous climate.

The spreads between interbank rates and safe government bonds have fallen, though they remain above historical norms.

Prepare for the central banks selling their enormous holdings of government bonds to drive up interest rates.

China has focused on short-term Japanese government bonds, with 96% of its purchases in maturities under one year.

On Monday morning European stockmarkets enjoyed a rally and yields on two-year Greek government bonds fell by more than half.

But today short-term rates are virtually zero. So the Fed wants to push down longer-term rates by buying longer-term government bonds.

The banks have huge portfolios of government bonds, and an increasingly likely European recession would hurt the value of all their assets.

Spanish and Portuguese borrowing costs soared last week as investors fled peripheral euro zone government bonds.

Banks are notoriously stingy lenders, and prefer to place their money in seemingly risk-free Japan government bonds (JGBs).

Yoshihiko Noda, Japan's finance minister, is questioning the rapid pace at which China is buying Japanese government bonds.

The bulk of the $3 trillion is invested in government bonds in the U. S. and Europe.

That means cutting short-term rates and embarking on "quantitative easing" (buying government bonds) on a large scale.

The debt reduction needs to cover publicly held debt as well as privately held government bonds.

Germany's equities yield 2. 9% and its ten-year bonds yield just 2. 1%. Equities yield more than government bonds in Britain as well.

This is to say, unlike equities or government bonds, they cannot always be sold on easily to other investors.

Some European banks haven't sufficiently written down the value of Greek government bonds and other distressed sovereign debt they own.

But it is also true that most government bonds are held by domestic banks, the same institutions Fitch is so worried about.

But as investors have demanded higher yields on government bonds this has spilled over into higher funding costs for banks, too.

Usually, a central bank will conduct open market operations by buying short-term government bonds or foreign currency.

Government bonds of Portugal, Spain, Italy and Ireland would see more significant markdowns, the sources said.

Capital expenditure includes interest on government bonds charged to Capital Works Reserve Fund.

A failure to agree in principle on measures is likely to trigger a sell-off in peripheral government bonds.

It was knocked off its throne only briefly when the Fed stepped in to buy government bonds with its quantitative easing.

Soon the Rothschilds were floating government bonds on a much larger scale -- and then speculating in them.

Slowing the pace at which it amasses U. S. Treasurys, China has started buying more South Korean and Japanese government bonds.

In addition , the European Central Bank (ECB) said it would purchase government bonds to restore calm to "dysfunctional" markets .

Her government banned traders from buying so-called naked shorts, default protection on government bonds they don't own.

US government bonds are considered to be the safest type of bonds.

But it will increase the risk of sovereign default, raising doubts both over loans to Irish banks and government bonds.

The bad assets were not Zimbabwean government bonds but loans given to troubled banks backed by problematic and illiquid assets.

Although small, it has attracted buying when the prices of government bonds have fallen.

Credit- default swap contracts on Irish government bonds jumped 25. 5 basis points to 551 , according to data provider CMA in London .

America's economy was resurgent. Investors piled into equities and sold some of the government bonds they'd bought for troubled times.

Yields on government bonds went down, yields on corporate and high-yield bonds, which carry greater credit risk, went up.

It now says that it will reinvest the proceeds from maturing securities in long-term government bonds.

Marketable securities consist primarily of government bonds and the bonds and stocks of large corporations.

Brazil government bonds yield around 12. 5% a year.

The news sent yields on Spanish government bonds, which have an inverse relationship with prices, sharply higher.

Since early February yields on Portuguese ten-year government bonds have been hitting euro-era highs above 7%.

As they have mopped up dollars, using government bonds, they have accumulated reserves.

Such dynamics have made shorting Japanese government bonds a popular trade of late.

U. S. government bonds, which usually benefit from worsening economic conditions, were mixed.

German and US government bonds are being bought as aggressively as Greek, Italian and Spanish debt is being disposed of.

"But we also saw significant purchases of ETFs [exchange traded funds] and gilts [government bonds]. "

Eventually, low returns in government bonds will drive some investors into equities and high-yield credit.

One can also use estimates of expected inflation derived from government bonds to estimate real rates of interest on corporate bonds.

This fund evenly splits its investments between U. S. and non-U. S. bonds and includes a hefty weighting of government bonds.

With interest rates plunging, banks are making less off their interest-earning assets like government bonds and other ultra-safe securities.

The main beneficiaries of the privilege are US government bonds and the dollar.

"We have been underweight U. S. Treasuries and have virtually no Japanese government bonds, " Holt said.

government bonds for the payment and settlement (including the issue and payment).

Some economists find the Fed's actions alarming, especially its purchases of government bonds.

Meanwhile, yields rose once again on Portuguese government bonds to even more intolerable levels.

Central banks tend to keep most of their foreign-currency holdings in safe and frequently traded government bonds.