Sovereign bonds, also known as government bonds or treasury bills, are securities issued by a national government to finance its operations. These bonds are typically backed by the full faith and credit of the issuing country, meaning that they carry minimal risk for investors since governments rarely default on their debt obligations. Sovereign bonds can be used as a source of funding for various public projects or to stabilize economies during times of financial crisis. They are also considered safe-haven assets by many investors, providing stability and consistent returns in uncertain economic environments.