Sovereign bonds are loans that governments receive from individuals or institutions. These loans are like an IOU where the government promises to repay the amount borrowed with interest at a future date. Full definition
In other words, global sovereign bond index funds are few and far between, and I have never seen anyone recommend them as a core holding. (moneysense.ca)
However, he acknowledged that the current state of sovereign bond markets was «not normal,» and «some sort of European solution» was necessary. (thinkadvisor.com)
The central banks therefore operate as regular participants in sovereign bonds markets. (europeanlawblog.eu)