Bond Market

Bond market means the market where investors buy and sell bonds. In simple terms, the bond market is where governments and companies borrow money from investors. The bond market is important because it influences interest rates, borrowing costs, mortgage rates, and investor views about inflation and economic growth. When bond yields move sharply, stocks and other assets can also react. For example, when investors buy and sell U.S. Treasury bonds, those trades happen in the bond market. The bond market is not the same as the stock market. The bond market focuses on debt, while the stock market focuses on ownership shares in companies.