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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How do government bond yields work?

Let's take the following quote from Bloomberg: Russian government bonds rose, pushing the yield to the lowest level in almost three weeks, as inflation data boosted speculation the central bank ...
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2answers
72 views

Are AAA private-sector corporate bonds safer than government bonds?

Conventional wisdom says that government bonds are the safest investment there is. But the Indian government is rated only one level above junk. Aren't AAA-rated bonds of Indian companies safer? ...
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1answer
100 views

If I cash in a U.S. treasury bond before maturity, do I lose out on the difference in face value and purchase value?

I have a 30-year U.S. treasury bond (series EE) that is about 3 years away from maturity. I'm considering cashing it in. However, the purchase value was half the face value. If I cash it in, would I ...
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3answers
192 views

Basic understanding of bonds, values, rates and yields

I'm looking for a very simplistic (ELI5) explanation of how bonds work, but I'm not sure I have the basics correct. As I understand it, a bond is basically a IOU or loan. Any company, government or ...
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0answers
42 views

Government bonds ETF

I have two government bond ETFs as part of my portfolio. These are IBTS and IBGS, that have 1-3 year bonds of the US and Europe. What happens if interest rates become higher? Will these lose value ...
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0answers
86 views

Is interest from US Savings Bonds subject to nonresident alien tax withholding?

A person received some US Series EE Savings Bonds when he was a child. He was always a nonresident alien for US tax purposes and he is not from a treaty country. The Bonds matured in 2001 and has ...
4
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1answer
77 views

Where do I-Bonds fit into personal finance plans?

I'm mainly interested in a finding a medium-term, low risk savings vessel. Bank and Credit Union savings accounts available to me at the moment are all < 1% APY, so inflation-protected securities ...
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1answer
165 views

Why are U.S. Treasury interest rates are so low vs. other nearly risk-free rates?

I was reading Options,Futures and Other Derivatives by John Hull and I came across the question: Why are US Treasury rates significantly lower than other rates that are close to risk-free? I ...
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1answer
179 views

Tangible alternative to paper U.S. savings bonds?

When I was little, it was fairly common to get US Savings Bonds from relatives. It introduced me to savings, financial instruments, and the idea of delayed gratification. I know there are 529 plans, a ...
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1answer
55 views

Understanding payment options with NS&I Bonds

So, just like many, my parents want to invest in: http://www.nsandi.com/65-guaranteed-growth-bonds?ccd=NALBAA since they are supposed to be quite good however, there is a genuine fear that the money ...
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1answer
3k views

Did Greece really issue bonds to investors yielding 42% interest?

I read this in the news regarding Greece's financial crisis: The country’s 10-year bond yield fell 11 basis points to 8.04 percent at 12:26 p.m. in Athens today. While that’s down from a record ...
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2answers
120 views

Could someone help me understand bond information?

I'm currently looking at this website for information on Government of Canada bonds. I was just wondering if anyone could tell me when the coupon payments are made (is there only one at maturity?) and ...
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3answers
74 views

Does pursuing the highest yields or pursuing the lowest ones give better returns in the long run?

Consider two people (Alice and Bob) who have some money each month to save and invest in government bonds of their own country (because they want it to be liquid, and have the smallest risk of ...
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2answers
67 views

Please help me understand reasons for differences in Government Bond Yields

First off, I'm completely new to all of this, so please go easy on me. According to http://markets.ft.com/research/Markets/Bonds I notice that the yields on the following government bonds are as ...
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1answer
52 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
121 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
253 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
78 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 ...
2
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1answer
4k 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
805 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
127 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
178 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
398 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
29 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
135 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
180 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
71 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 ...
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1answer
159 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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3answers
4k 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
418 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
2k 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
8k 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
580 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
116 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
774 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
330 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
671 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 ...
2
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1answer
263 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
61 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
3k 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 ...
4
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1answer
256 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
315 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
4k 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
2k 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 ...
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5answers
2k 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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2answers
2k views

What does “Yield Curve” mean?

In the financial news we often read about the Yield Curve, what exactly is it?
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1answer
248 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
228 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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6answers
740 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
760 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% ...