Quick Definition

Japanese Government Bonds (JGBs) are debt securities issued by the government of Japan to finance its fiscal deficits and manage public financial needs.

Examples

• 1A Japanese investor purchasing JGBs to secure a low-risk asset in their investment portfolio.
• 2A pension fund investing in long-term JGBs to match their long-term liabilities with stable, predictable returns.
• 3Foreign investors buying JGBs as a way to diversify their bond holdings and gain exposure to the Japanese yen.
• 4Central banks including JGBs in their foreign exchange reserves for stability and liquidity purposes.

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