for questions that relate to government bonds. It is recommend you use a country tag or state what country you are referring to. A government bond is a bond issued by a national government, generally promising to pay a certain amount on a certain date, as well as periodic interest payments.

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34 views

How does the price of expiring bonds expected to change?

There are some old bonds here in Hungary that currently sells at 111% of face value and after taxes they have 5,1% coupon yield. They have 3 years left. If I keep it till maturity, the YTM is only ...
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2answers
81 views

Treasury bills, how do they work?

I am looking at Bills tab on the site: http://www.treasurydirect.gov/instit/annceresult/annceresult.htm There is a 4-week security term with what appears to be a 4-week maturity date, with ...
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1answer
64 views

Where to buy good corporate/goverment/treasury bonds?

I am non american citizen. I read a portion of Benjamin Grahams, "The Intelligent Investor" he suggests that one should always have a portion of ones savings in bonds. Specifically, he mentions SERIES ...
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2answers
56 views

Why are real-term bond yields systematically declining, and what does it mean for investors?

I'm having hard time understanding what is causing the trend below: In theory, since it is inflation adjusted I'd expect the yield to fluctuate with the economic cycle, but not systematically drift ...
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1answer
451 views

Why are US treasury bonds priced in 32nds?

What is the historical reason for treasury bonds to be priced in 32nds? I have tried using Google and this site to find the answer, but have not been able to find anything definite. Three ...
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1answer
165 views

Is it possible to buy UK Consols (perpetuities)?

I remember learning about UK consols in my finance class when we were discussing perpetuities. Consols apparently still exist and pay 2.5% perpetually. If I could buy a small one, I think it would ...
3
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1answer
77 views

Pros & cons of Floating Rate Notes (FRNs) offered on TreasuryDirect, vs. Treasury Bills?

I'm specifically looking to make short term investments in Treasury Bills or Floating Rate Notes (FRNs), which are new securities that began to be offered in January 2014. How do each of these ...
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2answers
133 views

If USA defaults on its debt, will the T bond holder get back his money [closed]

When a corporation defaults, the bondholders are paid ahead of the shareholders. But if a person buys Treasury bonds, and the US government defaults, will the lender be paid back? By whom? You cannot ...
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1answer
123 views

Why government bonds fluctuate so much, even though interest rates don't change that often?

Why do government bond prices fluctuate on a daily basis on the bond market? I can understand the fluctuation of corporate bonds because they are tied to the credit worthiness of the company and ...
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2answers
26 views

Upward Spike in US Treasuries despite S&P Downgrade in August 2011

From P84 in ETF for Dummies, 2nd Ed, by Russell Wild : In August 2011, as S&P downgraded U.S. Treasuries, the stock markets again took a tumble, and — guess what? — Treasuries, despite their ...
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1answer
78 views

How can I buy government bonds from foreign countries?

I would like to follow the advice of Nassim Nicholas Taleb, to a little degree. I have retirement money in lots of US domestic stock funds which is also where I live. I would like to hold some ...
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2answers
74 views

Would long-term treasury bonds (e.g. TLT) generally rise when stocks (e.g. SPX) fall?

Is this a correct analysis of TLT (iShares 20+ Year Treasury Bond): It was hammered by QE talk in May. It will continue to generally drift lower while QE is in effect or even being tapered and the ...
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1answer
60 views

Can I contribute my existing Treasury Bills into a Roth IRA?

Let's say I have paper 30yr treasury bills sitting in a safe that don't mature for 9 years. Can I place those bills into a Roth IRA? If so, are they valued against my contribution limit at face ...
3
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1answer
121 views

Should I always hold short term bonds till maturity?

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to ...
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1answer
1k views

What effect would currency devaluation have on my investments?

I am curious what effect currency devaluation has on the value of my various investments/assets. For instance, I have retirement savings in mutual funds, growth stocks, and bonds. First, let's ...
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2answers
205 views

How does the Pension system work in Poland?

I've been reading articles I found in chat about the Polish pension system and how it is changing. (Chat room: http://chat.stackexchange.com/rooms/22/show-me-the-money) I'm trying to understand how ...
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2answers
1k views

Is the price of a long-term STRIP typically higher than that of a short-term STRIP?

When interest rates and duration are taken into account, how do they affect the prices of STRIPS ? I'm so confused with this question.
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2answers
2k views

How does the 10 year U.S. Treasury bond work?

Can someone explain to me how these bonds work? Are they released to the public at a certain price (face value) and interest rate, and the face value is what traded on in the market place, resulting ...
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2answers
550 views

Why does quantitative easing negatively affect stocks?

Is there a solid rationale for why the Fed's quantitative easing negatively affects the stock markets? Is it because markets were due for a correction, and quantitative easing provided the excuse? ...
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1answer
73 views

Questions about government bonds that have already matured

I have a family member that holds some bonds issued on real paper (like from trees). I have a few questions about mature bonds: Does a person have an indefinite period of time to cash them in? ...
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1answer
393 views

Where can I find historical United States treasury note volume?

I want to find the historical data for how much the government had to finance each year. How much 10-year note, how much 30-year note and how much 1, 2, 3, 5 year note? I mean annual data. I didn't ...
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3answers
284 views

Why did one-year notes pay more than 10-year notes during the 1980's crisis?

Why did one-year notes pay more than 10-year notes during the 1980's crisis? During the early 1980's, one-year T notes paid more than the 10-year T note, which implies that nobody wanted to buy the ...
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1answer
470 views

How much in inflation protected securities (TIPS) should I buy?

I'm wondering whether it's worthwhile to allocate some of my bond portfolio in the Vanguard TIPS fund. I plan to work until about 2040, and I prefer (efficient) risk over return. I plan to buy and ...
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1answer
112 views

How to figure out interest received from 'cash and cash equivalents' in a balance sheet?

Looking at APPL's balance sheet, I can see that they have a few million as cash and cash equivalents. I want to know more about cash and cash equivalents. I understand that cash and cash ...
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1answer
52 views

How to find out if a company has purchased government (or other) bonds?

Looking at a company's income statement, balance sheet, and cash flow, is it possible to find out if a company has given out a loan to a government or to another business, i.e. government/corporate ...
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4answers
1k views

Why would anyone buy a government bond?

In my country, the interest rates on government bonds are currently 2 - 3%, but I have money in a term deposit at the bank which earns 4% interest. I don't understand how this can be possible. Why are ...
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1answer
136 views

How does S&P schedule reviews of sovereign credit ratings?

It's not too hard to find current sovereign credit ratings, but I need more info. I believe that the major ratings agencies schedule reviews of different countries (or banks, etc.) so what I'd like ...
2
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1answer
181 views

How can I cash out US government savings bonds?

My grandmother gave me a series of US government savings bonds before she died. I have the ID numbers, but not the physical bonds themselves. The bonds are in my name; I received them as gifts. Will ...
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1answer
3k views

what is the meaning of allowing FDI in Insurance and pension funds

I want to know with respect to following news http://www.hindustantimes.com/business-news/WorldEconomy/Pension-insurance-get-FDI-boost/Article1-939798.aspx ...
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1answer
767 views

Can someone explain how government bonds work?

Can someone explain, for irresponsible investors, the maths behind government bonds as presented here? I am assuming that the "coupon" is the yearly interest paid on the original price. Since this ...
14
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2answers
669 views

Why would I buy a Bond at a Negative Interest rate?

I read recently that France is selling bonds at Negative Interest Rates. I understand why this is beneficial for France, but why in the world would I pay money to let someone hold my money?
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1answer
188 views

Governments Debt/GDP and Budget (deficit/surplus), how to read the figures to decide what bonds to buy?

After searching for hours on Google I found these two great tables (theya are also sortable): list of Government Debt to GDP ratio list of Government budget (I took hours to find this because I ...
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2answers
208 views

How to bet on Japanese government bonds interest rate going up in the coming years?

Is there a way for a private individual investor to bet on Japanese Government bonds interest rate going up in the coming years?
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5answers
521 views

10-year real Treasury bond yield: How can it be zero, or negative?

How can the 10-year real Treasury bond yield be zero, or negative? That's like giving out money for free, right? Does that mean that people expect the value of the dollar to go up (deflation)?
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3answers
326 views

Treasury Bonds, compounding at new interest rates

this is more a question about bonds in general than just Treasuries, but we will use Treasuries for example Let say you have $10,000,000 and you buy 30-year Treasury bonds currently yielding 3% ...
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2answers
146 views

Liquidity of U.S. treasury bonds and moving in and out of them before maturity?

I am curious about the liquidity of U.S. treasury bonds. I always hear about how liquid they are. I like the rates of the 30 year treasury bonds but lets say I don't want to park money for 30 years. ...
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2answers
186 views

What's behind the long secular bull market in U.S. Treasuries?

Long-term treasury yields have been going down fairly continuously since the mid 1980s. Right now, the 30-year yield is under 3%, meaning that it is likely to barely keep up with inflation if held to ...
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1answer
97 views

Is it common for ratings agencies to disagree on sovereign debt ratings?

I heard today that Moody's and Fitch and left the US sovereign debt rating at AAA/Aaa, despite the downgrade from S&P to AA+. Is it common for ratings agencies to disagree on a rating? If so, is ...
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4answers
228 views

For an investor, what's the appropriate response to the U.S. Debt downgrade?

So the S&P has downgraded United States debt from it's AAA status. There have been other threads discussing why/when a downgrade will happen, as well as possibility of default. Instead, I want to ...
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3answers
211 views

How does a 2 year treasury note work?

The current prices of a 2yr seem to be near the 52wk low... is that good? Let's say I had $1,000 to spend and I put it all in 2yr treasury notes. Could I sell them in a year like stocks (if the price ...
5
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1answer
94 views

What effect would a lower U.S. government credit rating have on TIPS?

TIPS = Treasury Inflation Protected Securities. Inflation could come quickly if the U.S. starts printing money to pay debt. I'm thinking about investing in these to protect my portfolio. How does ...
4
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3answers
269 views

How could USA defaulting on its public debt influence the stock/bond market?

Ok, let's face it... US public debt is high and people are starting to wonder if the country might default on its debts. How would this hit United States' stock market, its bonds, or its currency? ...
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2answers
103 views

Is a pre-tax 401K, containing only treasury bonds, tax free on release?

In time-deferred pre-tax funds, such as 401K and IRAs, I understand that the contributions and capital gains tax is not paid until after they are released. In this case upon retirement/a certain age ...
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2answers
156 views

Would the effects of an anticipated default by a nation be mostly symbolic?

Given that the whole Greece saga has played out for a few years now -- and that most speculation is that Greece will default at some point -- if they finally do default, will it be mostly symbolic? ...
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5answers
228 views

What is the rationale behind stock markets retreating due to S&P having a negative outlook on the USA?

From a Bloomberg article published on 18/4/2011 Standard & Poor’s put a “negative” outlook on the AAA credit rating of the U.S., citing a “material risk” the nation’s leaders will fail to deal ...
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1answer
114 views

Who sets the prices on government bonds?

I noticed my country Greece wanted to sell bonds last year and they were stating "If they go above 7% we won't sell.". But who sets the price if not them? Why can't they say "the price is 5% and if ...