Government treasuries—bonds issued by national governments—are considered among the safest long-term investments. When an investor purchases a government bond, they lend money to the government for a set period. In return, they receive interest payments on the loan. Bonds can be traded on a thriving secondary market, offering flexibility and potential returns based on factors like political stability, currency value, and inflation risk.

Stocks represent ownership in a company and may pay dividends based on corporate performance. Bonds, in contrast, are debt instruments offering fixed interest payments over time, with the principal repaid at maturity. While stocks offer potential for growth, bonds provide a steady income stream and lower risk.

Bonds function as loans made by investors to governments or corporations to raise capital for various needs. In return, bondholders receive regular interest payments and the return of their initial investment at maturity. Bond markets offer both primary and secondary trading opportunities, providing liquidity and investment flexibility.

• Euro-Bund
• Japan Government Bond

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