Bonds issued by the U.S. government:

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Bonds issued by the U.S. government are considered to be free of default risk, as they are backed by the full faith and credit of the U.S. government. This means that the government is considered to be one of the safest and most creditworthy borrowers in the world, making U.S. Treasury bonds a popular investment choice for risk-averse investors. However, U.S. Treasury bonds are still subject to interest rate risk, which refers to the risk that the value of the bond will decrease if interest rates rise. U.S. Treasury bonds are also subject to taxation at the federal level, and do not typically offer higher coupons than comparable bonds issued by corporations. "Munis" refer to municipal bonds, which are issued by state and local governments, not the federal government.

Bonds Issued by the U.S. Government