Government security - Financial definition
Concise definition of the term government security
A government security is a bond or other type of debt obligation issued by a government to support government spending and obligations. These securities are considered low-risk investments due to the backing of the issuing government.
Comprehensive definition of the term government security
Government securities, including Treasury bonds, notes, and bills, serve as tools for financing government operations and managing the economy. These securities are traded in financial markets and are often purchased by central banks and institutional investors as part of their investment portfolios. They play a crucial role in monetary policy and are a key component of foreign reserves held by countries to manage currency stability and economic security. For instance, U.S. Treasury securities are widely held by other governments as part of their foreign exchange reserves, providing liquidity and safety in international finance.