GOVERNMENT BONDS

Ordinary government bonds or government bonds are also called a bond issued by the government of a country denominated in that country. Government bonds denominated in foreign currencies are commonly called international bonds (sovereign bonds).

Risk
Ordinary government bonds is also called the "risk-free bonds" because the government of a country can raise taxes or print money to pay off the bonds from the payment at maturity. Indeed there are records where the government bonds has failed to pay as happened in Russia in 1998 the government called Russia's financial crisis, although this is very rare to happen.

For example, in U.S. government bonds, called "Treasury securities" is denominated in U.S. dollars and an investment in the U.S. dollar risk-free. In this case is the 'risk free "is meant safe from credit risk. But still there are other risks such as exchange rate risk for foreign investors in which the value of U.S. dollar is weakening against currencies of other countries. It is also against the risk of inflation which at maturity bond redemption values obtained by weakening the purchasing power of investors due to inlasi greater than the yield obtained. Many governments issue inflation indexed bonds that protect investors against inflation risk.

Government bonds can also be risky if issued by the government of a country whose country has the capability of financial policy which is less good. Let's say that Bulgaria has a dependency on the world economy and world economic institutions than other countries such as America. Some state bonds was rated on a scale of A-after 2004. In February February 2006 Standard & Poor's assigned a rating of the long-term debt terjadap Bulgaria in its domestic currency at BBB + scale. And this ranking is as the result of decades of decreased risk (and an increase in ratings).

Issuance of bonds
Government bonds issued by an institution that became part of the finance department of a country, for example:
Bund are bonds issued by the German Financial Institutions, denominated in euro

Gilts are bonds issued by the UK Debt Management Office (UK Debt Management Office) denominated in sterling

U.S. Treasuries are bonds issued by the Bureau of the Public Debt (Bureau of Public Debt)

Government bonds
Some types of government bonds
Asia

Japan
Rating: AA-/A2 Published by: the Ministry of Finance (MoF)
Japanese Government Bonds (JGBs)
Revenue Bonds / Straight Bonds
Financing Bills
Subsidy Bonds
Subscription Bonds
Contribution Bonds
Demand Bonds (Kofu Kokusai)

Indonesia
Rating: B + / Bb Published by: Directorate General of Treasury Department of Finance of the Republic of Indonesia
Government Securities (SUN)
Treasury Bills (NES) the maximum term of 12 months with interest payments sisitim discount.
State Bonds; above 12-month period
Without the coupon: the interest payment is implicitly reflected in the difference between the price at the time of issue and received a nominal value at maturity
With coupon: interest payments are calculated by a certain percentage of par value and paid on a regular basis
Fixed interest
Floating Flower
Bonds denominated in foreign currencies
Bonds of the Republic of Indonesia (ORI) is a retail bond sale to public investors at par value per share of Rp. 1 million

Europe
France
Rating: AAA / Aaa Published by: Agence France Tresor, the French Institute of debt [6]
Oats
BTFs - bills
BTANs - IOU a period up to 6 years
Assimilables obligations du Tresor (Oats) -
TEC10 Oats - rate bonds based on the yield index OAT 10-year maturity period
OATi - French inflation indexed bonds
OAT € i - Eurozone inflation indexed bonds

German
Rating: AAA / Aaa Published by: Finanzagentur GmbH, a German financial institution [7]
Bunds
Bubill - bills
Bundesschatzanweisungen (Schätze) - 2-year bond
Bundesobligationen (Bobls) - 5-year bond Bundesanleihen ** (Bunds), - bonds

Italy
Rating of A + / AA2 Published by: Dipartimento del Tesoro [8]
BTPs
Ordinari Buoni del Tesoro o (bots) - term debt securities up to one year
Certificati o del Tesoro Zero Coupon (CTZ) - term debt securities up to 2 years
Buoni del Tesoro o Poliannuali (BTPs) - bonds
Credito del Tesoro Certificati at (CCTs) - floating rate debt securities
BTP Indicizzato all'Inflazione - inflation bonds

English
Rating: AAA / Aaa Published by: UK Debt Management Office [9]
Gilts
Conventional Gilts
Gilts indices
Gilts due date twin
Gilts with no due date
Gilt Strips

America
Rating: AAA / Aaa Published by: Bureau of the Public Debt [10]
U.S. Treasuries
Treasury bill
Treasury note
Treasury bond
TIPS
Savings bond