Expensive government bonds will shift demand to mortgage or corporate bonds, pushing up their prices.

In addition, state bonds are not treated as equals, and the markets penalize profligate states.

And the European Central Bank has begun to buy government bonds, including those of Greece, at prices well above those that would prevail in a free market.

But this is because government bonds are purchased mostly by domestic organizations and households.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity. Hence, the Fed s intervention in the housing market is really an intervention in the government bond market the purported switch from buying mortgages to buying government bonds is of little significance.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.

Japan's is a debt that cannot be paid and its government bonds deserve junk bond rating.

The ECB has already purchased almost a 100 billion of peripheral government bonds, and it is committed to buying a lot more.

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.

And widening interest rate spreads on government bonds do not bode well, either, as this will quickly lead to pressure for further spending cuts.

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

Historically, the gap between expected returns on low risk assets like government or investment grade bonds and high risk assets like stocks and real estate has been very high.

Barrels, Bushels, and Bonds

Brady Bonds For the Eurozone

Aren t bonds safer?

Sometimes the cause is government guarantees.

At a time of economic downturn, domestic banks find government bonds a safe place to park their money, making it less difficult for the government to finance its mounting fiscal deficit.

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.

Bonds were issued to finance a war.

The government's programs are not mere populist promises.

Government offices also follow the same timings.

In this case, it resembles a balance of financial terror, analogous to the Cold War military interdependence in which the US and the Soviet Union each had the potential to destroy the other in a nuclear exchange. In February 2010, a group of senior Chinese military officers, angered over US arms sales to Taiwan, called for China s government to sell off US government bonds in retaliation.

In February 2010, a group of senior Chinese military officers, angered over US arms sales to Taiwan, called for China s government to sell off US government bonds in retaliation.

When employment and output threaten to decline, the central bank buys up government bonds for immediate cash, thus shortening the duration of the safe assets that investors hold. With fewer safe, money yielding assets in the financial market, the price of safe wealth rises.

The current differences in the interest rates of euro zone government bonds show that the financial markets regard a break up as a real possibility. Ten year government bonds in Greece and Ireland, for example, now pay nearly a full percentage point above the rate on comparable German bonds, and Italy s rate is almost as high.

When employment and output threaten to decline, the central bank buys up government bonds for immediate cash, thus shortening the duration of the safe assets that investors hold.

Ten year government bonds in Greece and Ireland, for example, now pay nearly a full percentage point above the rate on comparable German bonds, and Italy s rate is almost as high.

Create Growth Linked Bonds

These bonds are referred to as callable bonds.

Finally, the interest rate criterion requires that rates on 10 year government bonds not be more than two percentage points above the rates in the three countries performing best in terms of inflation .

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

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.

So nothing stopped the banks from selling lemon bonds.

The government forcibly rescheduled the public debt holdings of these funds, known locally as AFJP.

The decision to buy Greek bonds directly was not unanimous.

Indeed, demand is outstripping supply.

Some government programs are shrinking from lack of demand.

A pan European bond would also have serious political repercussions.

Commodity bonds may offer a neat way to circumvent these risks.

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 ).