What are government bonds?
Government and semi-government bonds are issued by the Commonwealth and state governments respectively and are among the lowest risk investments in Australian capital markets.
Government bonds are medium to long term debt securities classified as government (federal) or semi-government (state or territory). Government nominal bonds have maturities currently ranging from one year to 12 years, however longer dated maturities are also available for index linked bonds, both of which may be bought and sold on the secondary market.
Unlike other securities, government bonds are not linked to the performance of the economy and as such provide investors with diversification and a hedge against economic downturn. Australian Commonwealth Government bonds are considered 'risk free' which is important for those investors that want capital certainty and a regular income.
All government and semi-government bonds are extremely liquid so would contribute to a higher level of liquidity in most portfolios. Government bonds can also be traded in small parcels.
Access government bonds with FIIG DirectBonds
FIIG is a registered bidder of Commonwealth Government Securities (CGS) and an approved panel member of The Australian Office of Financial Management (AOFM). Our team of fixed income specialists can offer insight into current relative value between various government bonds as well as other fixed income products.
Find out how you can access government bonds through our DirectBonds service from just $10,000 (with a minimum portfolio balance of $250,000) with a free consultation with a FIIG fixed income specialist.