What Is a Yankee Bond?

"Yankee" bonds are bonds issued by non-U.S. Residents in the U.S. domestic market and absorb US funds, also known as "US foreign bonds." Yankees have a long history, but between 1964 and 1974, the US government levied an interest balance tax on the interest income of American residents from such bonds. After the cancellation of the interest balance tax in 1974, foreign institutions entered the US market again to issue Yankee bonds to raise funds, and the issuance of Yankee bonds began to take on a certain scale. But the increase was not significant at that time because the issuance of Yankee bonds was subject to stricter control by the US government. ^[1]