Is it higher to buy government bonds or time deposits? What types of government bonds are there?

The higher the yield of a country's treasury bonds, the more people worry about the financial situation of the government. Treasuries are based on national credit and are extremely safe. I believe that after reading the following article, you will have a certain understanding of whether buying treasury bonds or fixed deposits has a higher yield. I hope it can help you.

Contents of this article

1. Which is higher, buying government bonds or fixed deposits?

2. What types of government bonds are there?

3. How does the Treasury yield affect the economy?

Is it higher to buy government bonds or time deposits?

1. Currently, bank interest rates are very low, and the yield on government bonds is definitely higher than that on time deposits.

2. Treasury bonds are based on national credit and are extremely safe. From previous issuances, the yield on treasury bonds is higher than the interest rate on time deposits of the same term. Allocating treasury bonds is a good choice for conservative investors.

3. When buying treasury bonds, the longer the term, the better. The longer the time, the more unknowns investors will face. Since there may be a cycle of interest rate hikes in the future, it is not recommended that investors allocate treasury bonds with too long a term.

4. In addition, before investing, it is best to determine the short-term or long-term use of the funds in hand before choosing the investment direction. For example, if you pursue stable returns, you can buy products such as government bonds. If you just want a temporary "safe haven" for funds, government bonds are not the best choice.

What types of government bonds are there?

1. Deficit national debt: refers to the national debt used to make up for the fiscal deficit. In countries that implement the double-entry budget system, the national debt included in the current budget is considered deficit national debt.

2. Construction bonds: refers to bonds used to increase the country's investment in the economic field. In countries that implement a double-entry budget system, bonds included in the capital (investment) budget are construction bonds.

3. Special government bonds: refers to government bonds issued within a specific scope or for specific purposes to implement a special policy.

4. War bonds: War bonds refer to bonds used to cover war expenses.

How Treasury yields affect the economy

The higher the yield of a country's treasury bonds, the more people are concerned about the financial situation of the government. They doubt their ability to repay in the future. A high yield of treasury bonds indicates that the economic situation and economic prospects are very bad. If the yield of treasury bonds is low, it means that people believe that the financial situation of the country or government is healthy. The current economic situation affects the yield of treasury bonds, and the yield of treasury bonds affects people's economic expectations of the economy.