What are government agency bonds?

U.S. government agency bonds are debt obligations issued by government-sponsored enterprises (GSEs) or U.S. government agencies. GSEs are independent organizations sponsored by the federal government and established with a public purpose. Agency bonds usually are issued in $1,000 denominations.

Are agency bonds a good investment?

U.S. agency bonds are a type of highly rated bond investment that may help investors earn slightly higher yields than U.S. Treasuries without taking on too much additional risk. We continue to suggest investors focus on high-quality investments today, and agencies fall under that guidance.

Who issues agency bonds?

Agency bonds are issued by government-sponsored enterprises (GSEs). Some of most common issuers of agency bonds include, but are not limited to, the following: For this article, we are focusing solely on bonds issued by the agencies, and not mortgage-backed securities.