Japanese Government Bond - JGB


DEFINITION of 'Japanese Government Bond - JGB'

A bond issued by the government of Japan. The government pays interest on the bond until the maturity date. At the maturity date, the full price of the bond is returned to the bondholder. Japanese government bonds play a key role in the financial securities market in Japan.

BREAKING DOWN 'Japanese Government Bond - JGB'

JGBs are very much like U.S. savings bonds. They are fully backed by the government, making them a very popular investment among low-risk investors and a useful investment among high-risk investors as a way to balance the risk factor of their portfolios. Like U.S. savings bonds, they have high levels of credit and liquidity, which further adds to their popularity.

  1. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
  2. Liquidity

    The degree to which an asset or security can be quickly bought ...
  3. Security

    A financial instrument that represents an ownership position ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. The Government Pension Investment ...

    The pension fund for Japanese public sector employees. The GPIF ...
  6. Yugen Kaisha - YK

    A type of limited liability company that could be established ...
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