Government paper

Government paper,

Definition of Government paper:

  1. Because of their ability to tax and/or create new, legal tender money, government paper is generally viewed as carrying less risk than otherwise equivalent, privately-issued securities. As a result, the government’s debt obligations and the market interest rates thereof are often used as benchmarks for other market rates.

  2. Bonds or other promissory certificates issued by the government.

  3. Debt security backed or guaranteed by the government. See also commercial paper.

  4. Government paper is a debt security that is issued or guaranteed by a sovereign government. Government paper of a nation is usually perceived as the least risky class of debt securities in that country and will offer investors the lowest yields compared with debt of a similar maturity issued by other entities in that nation.

How to use Government paper in a sentence?

  1. I believe they will flock to short and medium term government paper and the US bond market should see an astounding rally, at least for the foreseeable future.

Meaning of Government paper & Government paper Definition