What is soverign bond?

 A sovereign bond is a type of debt security that is issued by a national government to raise capital. Sovereign bonds are typically issued in the form of long-term bonds, which are typically issued with maturities of 10 years or more. They may be issued in local currency or in a foreign currency, and they may be denominated in a variety of currencies, including the U.S. dollar, the euro, and the Japanese yen, among others.

Sovereign bonds are considered to be a relatively safe investment, as they are backed by the full faith and credit of the issuing government. They are also generally considered to be a low-risk investment, as governments are typically more stable and less likely to default on their debt obligations compared to other borrowers.

Sovereign bonds are widely traded in the global financial markets, and they are often used by investors as a way to diversify their portfolio or to achieve a specific investment objective, such as income generation or capital preservation. It is important to carefully consider the specific risks and characteristics of a sovereign bond before investing, and to seek the advice of a financial advisor or professional if necessary.