A government bond is a type of debt security issued by a national government to support government spending. When investors buy these bonds, they are essentially lending money to the government in exchange for periodic interest payments and the return of the bond's face value at maturity. Government bonds are considered low-risk investments because they are backed by the government's creditworthiness.
These bonds come in various forms, such as Treasury bonds in the United States, which have different maturities ranging from a few months to several decades. Investors often view government bonds as a safe haven during economic uncertainty, as they provide a stable income and help diversify investment portfolios.