Sovereign issuance, predictable schedules
Government bonds are issued to fund public expenditure and pay interest on a defined schedule until maturity, when the face value is repaid.
How government bonds generally work
When you buy a government bond you are lending to the issuing government for a defined period. In return you receive periodic interest — the coupon — and the face value at maturity, in line with the terms of issue.
Coupons may be fixed or floating, and are typically paid half-yearly. Tenures range from short-dated instruments to bonds maturing decades ahead.
Because the issuer is sovereign, credit risk is generally regarded as low relative to corporate issuers. That does not eliminate price risk: if you sell before maturity, the price you receive depends on prevailing interest rates.
Coupon, tenure and how returns arise
Coupon
Interest calculated on face value and paid at stated intervals until maturity.
Tenure & Maturity
A defined end date on which the face value is scheduled to be repaid.
Yield vs Coupon
Your yield depends on the price paid; buying above or below par changes the return.
Interest-Rate Sensitivity
Longer maturities move more in price when rates change.
Liquidity
Secondary-market liquidity varies by security and tenure.
Taxation
Interest and any capital gains are taxable as per prevailing rules.
Who they generally suit
- Investors seeking predictable interest income
- Portfolios that need a lower-volatility counterweight to equity
- Long-horizon needs that can be matched to a maturity date
- Retirees planning income against known dates
Points to weigh
- Price can fall if you exit before maturity and rates have risen
- Fixed coupons may not keep pace with inflation
- Liquidity differs across securities and tenures
- Post-tax return matters more than the headline coupon
We do not publish bond yields or availability on this page. Current issues, indicative yields and eligibility are confirmed by our advisory team at the time of enquiry.
Explore Bond Investment Opportunities
Speak with our advisory team to understand available opportunities and suitability.
Important: Government bonds are subject to interest-rate and liquidity risk, and their market value can fall before maturity. Yields, issue availability and terms are indicative and subject to change. Nothing here is a recommendation or an assurance of return.
Speak with an advisor before your next investment decision.
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