What are the safest bonds?

Answer 1

It depends upon how you subjectively define safe. If you mean no risk of losing principal, then the ninety day Treasury note is the least risky instrument. If you mean keeping up with inflation, then an inflation indexed bond is safer.

Answer 2

traditionally U.S govrnment securities such as the T-bill, T-note, and t- bond are the safest securities these securities are exempt from your local and state taxes. Right now these bonds are right in the 5% give or take a little range.

Bonds are rated as follows in this order best to worst
AAA(very safe)
AA
A
BBB
BB(anything below this is getting risky and not suitable for most investors)
B
CCC
CC
C
DDD
DD
D

Many municipal securities carry the AAA and AA rating these securitie are safe and securities of this rating will carry a interest rate of arounf 3.7% for short term and almost 4.7% for long term again give or take a little as interest rates can change daily. These securities are exempt from federal taxation and if you by municipals issued with in your home state these issues will be tax exempt at all levels.

Many corporations do have bonds that carry credit ratings of AAA and AA which would be pretty safe bonds. These bonds are fully taxable and pay interest rates currently around 6%. If you do go with these bonds a mutual fund that allocates towards bond would be the best route to go so you can get diversified.

Keep in mind that most bonds are issued in denominations of $1000 minimum and some $5,000 or more.