What is government promissory note?

A government promissory note is a financial instrument issued by a government to borrow money from investors, promising to pay back the principal amount along with interest at a specified future date. These notes are typically used to fund government spending and can vary in terms of maturity, interest rates, and other conditions. They are considered low-risk investments, as they are backed by the government's creditworthiness. Investors often purchase these notes for their relative safety and predictable returns.