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A government bond is a Bond issued by a national government denominated in the country's own Currency . Bonds issued by national governments in foreign currencies are normally referred to as Sovereign Bond s. RISK Government bonds are usually referred to as Risk-free Bond s, because the government can raise taxes or simply print more money to redeem the bond at maturity. Some counter examples do exist where a government has defaulted on its domestic currency debt, such as Russia in 1998 - the "ruble Crisis" , though this is very rare. As an example, in the US, because the value of the US dollar declined against most other currencies). Secondly, there is Inflation risk - in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. Many governments issue Inflation-indexed Bond s, which protect investors against inflation risk. An example of somewhat risky bonds issued by a government can be given with countries that have less than perfect capabilities of conducting financial policies. Such an example is Bulgaria due to its being dependent on the world economy and economic institutions much more than, say, the US. Some of this country's bonds were only given an A-scale rating after 2004. As of February 2006 Standard & Poor's rates Bulgaria's long-term debt denominated in domestic currency at BBB+. And this rating is the result of almost a decade of constantly decreasing risk (and increasing ratings). We should also note that this country's short-term debt is in fact currently rated A. ISSUANCE Government bonds are issued through agencies that are part of the government's treasury department, for example
SEE ALSO LIST OF GOVERNMENT BONDS FROM THE MAIN ISSUERS for a comprehensive list of government bonds, see List Of Government Bonds s]] ASIA (AA-/A2) Issued By: Ministry Of Finance (MoF)
Ministry of Finance EUROPE Eurozone (AAA/Aaa) Issued By: ''Agence France Trésor'', the French Debt Agency
Agence France Trésor (AAA/Aaa) Issued By: ''Finanzagentur GmbH'', the German Finance Agency
Finanzagentur GmbH (A+/Aa2) Issued By: ''Dipartimento del Tesoro''
Dipartimento del Tesoro (AAA/Aaa) Issued By: UK Debt Management Office
UK Debt Management Office NORTH AMERICA (AAA/Aaa) Issued By: Bureau Of The Public Debt
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