Government Bonds
Issued with terms to maturity between two and 30 years, government
bonds are considered to be very low risk fixed-income investments
as they are backed by governments.
The value of government bonds fluctuates based on supply and demand
in the market—a government will increase the supply of bonds
to raise money that will be used to stimulate the economy.
Demand for government bonds tends to increase during periods of
low confidence in equity markets as investors seek safety. Demand
also tends to increase in periods of weak economic activity when
the threat of inflation is minimized.
To learn more about fixed-income investing, please continue by choosing one of the following
topics:
To learn about individual RBC Funds and how
they can address your investment objectives, access our Fund
Updates. If you are ready to invest now, contact your advisor
or explore the options
available to invest with RBC Financial Group.
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