Definition ∞ Government debt securities are financial instruments issued by national governments to finance public spending or manage national debt. These instruments, such as bonds, notes, and bills, represent a promise by the government to pay back a specified sum with interest over a defined period. They are generally considered low-risk investments due to the issuing government’s backing. These securities serve as a fundamental component of global financial markets.
Context ∞ The performance and yields of government debt securities significantly influence broader financial markets, including investor sentiment towards digital assets. Central bank policies regarding interest rates and quantitative easing directly impact the attractiveness of these traditional safe-haven assets. Shifts in government debt markets can consequently prompt capital flows into or out of the cryptocurrency ecosystem.