During Japan s lost decade, the Bank of Japan mostly bought Japanese government bonds, whereas the Fed is trying to reopen secondary markets for securitized private lending (which in the US is as important as bank lending), buying mortgage backed securities and consumer and business loans, as well as U.S. Treasury bonds.

The Bank of England is buying UK government bonds ( gilts ).

Countries debts undoubtedly play a vital role in the global financial system.

The proceeds were then invested in Greek government bonds and loans to Greek companies.

Despite the parlous fiscal position, for now the market for Japanese government bonds (JGBs) remains stable.

As a result, bringing down yields on government, corporate, and asset backed bonds has less impact.

In his opinion, it is therefore too early to invest in European government bonds or banks.

British government bonds now offer significantly lower interest rates than those of France, Italy, or Spain, even though the United Kingdom s fiscal position is considerably worse.

They invested, and still invest, their budgetary surpluses worldwide in government bonds and state owned enterprises.

When the euro was introduced, the authorities actually declared member states government bonds to be riskless. Commercial banks could hold them without setting aside any capital reserves, and the European Central Bank (ECB) accepted them on equal terms at its discount window.

When the euro was introduced, the authorities actually declared member states government bonds to be riskless.

First, sovereign bonds held by banks are treated as risk free assets under EU rules for calculating banks solvency and capital adequacy levels.

Investors would be able to buy Guatemala s coffee bonds, Côte d Ivoire s cocoa bonds, Liberia s rubber bonds, Mali s cotton bonds, and Ghana s gold bonds.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

Jamaica, for example, would issue aluminum bonds Nigeria would issue oil bonds Sierra Leone would issue iron ore bonds and Mongolia would issue copper bonds.

Nigeria would issue oil bonds Sierra Leone would issue iron ore bonds and Mongolia would issue copper bonds.

Ban the Common Bond

It is also what inspired the European Central Bank to launch an asset purchase program, which has been used to buy Greek and Portuguese government bonds.

One view holds that long term growth risks have been on the rise, raising the premium on assets that are perceived to be relatively safe, and raising precautionary saving in general.

(Of course, no one should think that any government bonds are completely safe, particularly from inflation and financial repression.)

NEW HAVEN The prices of long term government bonds have been running very high in recent years (that is, their yields have been very low).

Barrels, Bushels, and Bonds

Brady Bonds For the Eurozone

Fifth, some argued that highly indebted sovereigns would push investors into gold as government bonds became more risky. But the opposite is happening now.

Fifth, some argued that highly indebted sovereigns would push investors into gold as government bonds became more risky.

Aren t bonds safer?

What makes US strategy reckless is that the Bush administration is attacking China at the very moment that America's dependence on Chinese purchases of US government bonds is growing.

In the US, the interest rate on government bonds now rises from 1.80 at five years to 2.86 for 10 year bonds and 3.70 for 30 year bonds.

Defend public services

As the population ages and shrinks, more people will retire and start selling those government bonds that they are now lapping up.

Renminbi denominated government bonds were issued in London, and plans were laid to create new trading platforms for the currency in several European financial centers.

Bonds were issued to finance a war.

Government spending, no less than government transfers, has actual beneficiaries.

Of the roughly 200 trillion in global financial assets today, almost three quarters are in some kind of debt instrument, including bank loans, corporate bonds, and government securities.

They're failed states.

Create Growth Linked Bonds

These bonds are referred to as callable bonds.

Yet they are the obvious solution to the root cause of the euro crisis, which is that joining the euro exposed member countries government bonds to the risk of default.

But it also requires fiscal stimulus, especially public investment in productive infrastructure projects, which yield higher returns than the bonds used to finance them.

If rich country central banks can buy long term bonds, then emerging country central banks can buy dollar denominated bonds.

With interest rates on government bonds in the US, Japan, the United Kingdom, Germany, and Switzerland at ridiculously low levels, investors are on a global quest for yield.

When the euro was introduced, regulators allowed banks to buy unlimited amounts of government bonds without setting aside any equity capital, and the ECB discounted all eurozone government bonds on equal terms.

Creditors could be offered these par bonds, or a shorter term bond with a higher coupon but with debt principal marked down. The new bonds could be known as Trichet or Merkel Sarkozy or Honohan bonds whatever works to build consensus.

The EFSF buys the bonds of the countries which find it difficult to finance themselves in the marketplace (for example, Ireland) and issues bonds that are AAA rated.

Upon the issue of such an ECB bond, the ECB would simultaneously open a debit account for the member state on whose behalf it issued the bond.