The glossary Government bonds
A debt instrument issued by a government to support government spending or project. A bond has often a fixed maturity and pays regular coupon.
Often seen as a safe placement, government bonds tend to attract investors’ money when economic conditions are deteriorating. But not all government bonds are safe. In fact, some countries have defaulted on their debt (i.e. were unable to pay back money to investors) in the past. For example, Lebanon defaulted on its debt in 2020.