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Does the bold phrase mean "they have been selling European government bonds because they prefer buying pounds"?

Central bankers said they have been ditching European government bonds in favor of sterling-denominated U.K. government paper due to fears of a reversal in European debt prices and the potential depreciation of the Euro.

Source: http://www.marketwatch.com/story/even-after-brexit-central-banks-prefer-pounds-over-euros-survey-2017-04-03

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In investment, the term "government paper" means a form of debt security guaranteed by a government.

I'm not positive, but I believe that it can apply to bonds, debentures, and promissory notes in general.

More generally, it's a form of debt that the government has guaranteed.

Maybe the author uses the term "government paper" instead of using "bonds" again to be more general (including debentures and promissory notes along with bonds), or maybe it's just a stylistic preference to provide a different word.

  • +1 In financial circles generally, paper is used to designate any sort of negotiable instrument, and the use even extends to standardized contracts: I've just finished editing a video in which a US grain trader refers to contracts for grain delivered CIF (cost, insurance freight) as 'CIF paper'. – StoneyB Apr 4 '17 at 11:24

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