What are government bonds and what are the main risks associated with them?

What are government bonds and what are the main risks associated with them?

Government bonds are debt issued by the government of a country. They are considered low-risk insofar as the chances of default (guaranteed by the country concerned), in the terms and payments assumed, are considered almost zero, especially for countries with high credit ratings. Sovereign bonds are seen as an appropriate instrument to diversify equity portfolios…