Government bonds: A guide to Treasuries and global markets

Government bonds serve as essential borrowing tools for nations to fund operations. In the United States, these are known as Treasuries, which constitute approximately $30 trillion of the $160 trillion global bond market.

Other major international bond markets include the United Kingdom’s “gilts,” Germany’s bunds, France’s OATs, and Japan’s JGBs. While typically stable, bond markets can experience volatility during periods of economic uncertainty. When traders perceive increased risk in lending to governments, they often push yields higher, demanding more interest to compensate for that risk. Recent market activity has seen such shifts driven by concerns regarding high levels of government debt.