Their net foreign earnings must be invested in foreign countries stocks and bonds.

Prior to the crisis, banks had often been net sellers of foreign government bonds, but they significantly increased their purchases during 2008 2009.

Expensive government bonds will shift demand to mortgage or corporate bonds, pushing up their prices.

Interest rates on government bonds were racing upward.

Government bonds, on the other hand, have no covenants.

The government bonds of peripheral eurozone countries thus became toxic.

The Bank of England is buying UK government bonds ( gilts ).

To a large extent, this collateral consisted of government bonds.

Barclays Capital estimates that only a few globally significant foreign banks hold close to 10 of their Tier 1 capital in Greek government bonds, with the majority holding much less.

Later, governments in Europe started issuing perpetual bonds (bonds with no maturity date) to fund wars and other government spending.

In the US, the interest rate on government bonds now rises from 1.80 at five years to 2.86 for 10 year bonds and 3.70 for 30 year bonds.

Because the current account surplus is denominated in foreign currencies, China must use these funds to invest abroad, primarily by purchasing government bonds issued by the United States and European countries.

For example, individual countries government bonds could be replaced by Eurobonds.

Commercial banks loaded with weaker countries government bonds became potentially insolvent.

The dam is being funded by government bonds and private donations.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.

In January 1927, when the government proposed to redeem these bonds, rumor spread that the banks holding these bonds would go bankrupt.

In that case, China would no longer be a net buyer of foreign bonds and other assets.

Lending to foreign governments is in many ways inherently riskier than unsecured private debt or junk bonds.

Low risk central government bonds and central bank reserve requirements most of which are backed by substantial foreign exchange reserves account for 31 trillion of the 95 trillion in total commercial bank assets.

If foreign holders of dollar bonds become concerned that the unsustainability of America s situation will lead to higher interest rates and a weaker dollar, they will want to sell dollar bonds.

Nevertheless, the market for Japanese Government Bonds (JGBs) has so far remained stable.

Adding cocos to government bonds will require solving a host of technical problems.

Holders of European government bonds believed that they knew what they had bought.

The Federal Reserve, in particular, has bought huge quantities of US government bonds.

One form of that diversification is to buy foreign bonds and stocks, driving up the value of those currencies.

But this is because government bonds are purchased mostly by domestic organizations and households.

The proceeds were then invested in Greek government bonds and loans to Greek companies.

The old government bonds in this case would be converted at a reduced rate into replacement bonds, which are partly guaranteed (at 80 ) by the participating states.

Each month, China sold a net sum of about 7 billion in US government bonds.

Massive purchases of government bonds by the ECB would be the worst type of bailout.

European governments are not in a position to instruct the ECB to purchase government bonds.

With credit markets impaired, the Fed could buy more government bonds or private sector debt.

Investors would be able to buy Guatemala s coffee bonds, Côte d Ivoire s cocoa bonds, Liberia s rubber bonds, Mali s cotton bonds, and Ghana s gold bonds.

A shift in foreign investors portfolio preferences away from long term bonds could easily trigger such a run up in rates.

The excess of saving over investment has given Japan a current account surplus, allowing the country to finance all of the government borrowing domestically, with enough left over to invest in dollar denominated bonds and other foreign securities.

Because China s government does not owe much debt to the public, the PBC sold out its holdings of government bonds in 2005.

QE2, in which the Fed bought long term government bonds, did not have a discernible effect on long term government interest rates.

When the euro was introduced, the authorities actually declared member states government bonds to be riskless.

Despite the parlous fiscal position, for now the market for Japanese government bonds (JGBs) remains stable.

So, to meet the budget shortfall, a staggering 44.3 trillion in government bonds will be issued.

Evidence that the inmates were running the asylum would almost certainly precipitate the wholesale liquidation of US Treasury bonds by foreign investors.

At first, both the authorities and market participants treated all government bonds as if they were riskless, creating a perverse incentive for banks to load up on the weaker bonds.

And a Portuguese banker declared that, while banks should reduce their exposure to risky government bonds, government pressure to buy more was overwhelming.

Nominal bonds are not well hedged against inflation, and, over the long run, assets that are claims to cash without effective control are highly vulnerable to financial vultures. Prudent foreign government and private investors would find some way to diversify.