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agency bonds vs government bonds
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Agency bonds, issued by government-sponsored enterprises, offer investors an alternative to traditional Treasury bonds. These bonds are backed by the full faith and credit of the U.S. government but may offer higher yields due to their unique risk profile. Investors should consider the differences between Treasuries and agency bonds, including credit risk, interest rates, and liquidity, when making investment decisions. Both types of bonds are part of a broader bond
market that includes corporate, municipal, and government bonds.
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