Government Bond

A debt security issued by the U.S. government. Two common types are savings bonds and marketable securities; both tend to have a low default risk. Government savings bonds are not traded on any exchange; therefore, they are immune to market fluctuation. In contrast, “marketable” U.S. government securities, such as U.S. Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation-Protection Securities (TIPS), are commonly traded.