Investing in Government Bonds: A Safe Haven Strategy

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Introduction

Investing in government bonds has long been considered a safe haven strategy.​ These bonds are issued by the government and are backed by the full faith and credit of the government. This means that they are considered one of the safest investments available, with a low risk of default.​

What are government bonds?​

Government bonds are debt securities issued by the government to finance its operations or to fund specific projects.​ They are typically issued with a fixed interest rate and a specified maturity date.​ Investors who purchase government bonds are essentially lending money to the government and in return, they receive regular interest payments until the bond matures.​

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