sovereign bond

A sovereign bond is a loan that a country issues to raise money from investors. When you buy a sovereign bond, you're essentially lending money to the government, which promises to pay you back with interest over a specified period. Governments use this money to fund public projects or manage the economy. These bonds are considered relatively safe because they are backed by the country's ability to generate revenue through taxes, though their safety varies based on the country’s financial stability. In essence, it’s a way for governments to borrow funds from individuals or institutions worldwide.