U.S. Agency Bonds: What You Should Know

Bonds issued by government-sponsored enterprises can offer slightly higher yields than U.S. Treasuries, without requiring investors to take on too much additional risk.

U.S. agency bonds are a type of highly rated bond investment that may help investors earn slightly higher yields than U.S. Treasuries without taking on too much additional risk. We continue to suggest investors focus on high-quality investments today, and agencies fall under that guidance.

Agency bonds are issued by government-sponsored enterprises (GSEs). Some of the most common issuers of agency bonds include, but are not limited to, the following:

  • Federal National Mortgage Association, or Fannie Mae (FNMA)
  • Federal Home Loan Mortgage Corporation, or Freddie Mac (FHLMC)
  • Federal Home Loan Bank (FHLB)
  • Federal Farm Credit Bank (FFCB)
  • Tennessee Valley Authority (TVA)1