What Are the Risks of Investing in Government Bonds?

[Briangsam]

This is a very interesting read. I love it. In everything I read, I don't think there is any risk in having government bonds. It is advisable for new investors to invest in government-owned bonds because they have security over your investment.

 

[btaliat]

The risks associated with government bond may include inflation. If inflation occurs, the purchasing power of the money may be lost. And also, there may be various task risk. Government may reduce th returns on the bond

 

[KvngMurphy]

There's really no risk involved while investing in government bonds aside interest rate risk which is the most well-known risk in the bond market. The bond Will trade at a discount to reflect the lower return that an investor will make on the bond. Generally, rising interest rates will result in falling bond prices, reflecting the ability of investors to obtain an attractive rate of interest on their money elsewhere. The inverse relationship between market interest rates and bond prices holds true under falling interest-rate environments as well.

 

[Henrywrites]

Government bonds or so-called government bonds are bonds issued by the government of a country, there are also types of international bonds (sovereign bonds) denominated in foreign currencies (USD). There are many advantages if we have a government bond between: safe from credit risk or default, fixed income from periodic interest coupons set by the issuer. Generally, bond interest is higher than deposit interest or the central bank rate. The capital gain if sold on the secondary market will be greater than 100%. Government bonds as an investment instrument offer many advantages, but on the contrary, of course, there are also many risks that we should know about. So what are the risks of investing in government bonds that you know?

What I think about government bonds is that they are always the favorite when the government in power is one that have some favorable economic policies that help the citizens. This way, you get to earn better percentage by investing. I don't think of any clear risk that is associated with investing in government bonds unless when there is a change in government.

 

[Hamza1999]

A government bond does present market risk if sold prior to maturity, and also carries some inflation risk — the risk that its comparatively lower return will not keep pace with inflation. Tax Considerations: Treasury bond interest is fully taxable at the federal level but it is exempt from state and local taxes.

 

[Yasmin]

The biggest risk of investing in bonds is that the issuer is unable to continue making interest payments or repay the principal amount that you invested.

 

[Samuel77]

One of the higher risks of investment in government Bond is that, your business might be taken away from you or being closed down when you are unable to correspond with the terms and conditions

 

[tyrim88]

I don't think there are any risk involve in government bond for any one to be afraid of,because government is not an individual entity and your investment is always secure and the interest depending on the country is usually paid upfront.So there is nothing to worry about concerning the remaining capital.

 

[Eodine]

Just as government bonds have several advantages it also has disadvantage in the sense that money can be stuck in government bonds since it is fixed for a period of time then you might need money urgently.

 

[Good-Person]

There are many risks associated with investing in government bonds. In my country the government might ban issueing bonds and even if it were to allow the citizens to buy or sell bonds, then it might impose heavy taxes on bonds. So I would always avoid such kind of investments.

 

[btaliat]

One of the disadvantages of investing in governemnt bonds is that it can be affected by the inflation rate and even frequent change of governemnt as well as global economy meltdown

 

[Nurudeen]

I don't think any government bond comes with risk. So far you leave your investment capital to reach the duration you signed up for you will definitely get your capital and profit when ever it's due to be taken

 

[Grandeur]

Government bonds are one of the safest way to invest one's money but the disadvantage is that the interest is low and can tie down your money that may have been used to generate more income.

 

[HayKay]

So far so good, I'll tell you that they're the safest means of investing - the government doesn't owe. Though the interest might be small but it's better because it's a government you're lending money to.
So government bonds are really really 99% safe in my opinion. I'll consider and would definitely invest in them in future

 

[Yusuf]

I don't think there is any risk that comes with investing in government bonds. However, as the Investor, you just need to invest your money and leave it to mature with the tenure you choose for it

 

[Kingstone]

Almost all types of investment come with its risk. I don't understand a thing about investing in government bonds, but I know it's not a straight road. If not, virtually all of us will be into it as a means to secure the future by buying long-term bonds.

 

[kayode10]

Government Bond is very secured to some extent. I just don't love the fact that they are paying out is pretty much low compared to the duration of the bond terms. I would rather invest in cryptocurrency thanks buying government Bond.

 

[Bousine123]

Don't thibk there is any tangible risk involved in investing in government bonds when compared to other forms of Investments like forex.

 

[eLdavis]

I don't know much about how these bunds work so I can't say for sure if a government bounds would have it's risk or not but I believe every business has some element of risk attached to it

 

[joy101]

I don't really know government bond because don't really know if the business is working in my country,because theses kind of government bond investment can be very huge.