The bond market is the global market for debt securities — US Treasuries, corporate bonds, municipal bonds, mortgage-backed securities, sovereign debt from other countries. Larger than the stock market: global bond market exceeds $130 trillion versus $80T for equities. Treasury market trades $700B daily. Bond yields drive mortgage rates, business borrowing costs, savings yields, and discount rates for stock valuations. Major participants: governments, corporations, banks, pension funds, central banks, mutual funds. The bond market is often called 'smarter' than the stock market because professional institutional money dominates. Yield curve changes signal economic and monetary policy expectations.
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Bond Market
August 22, 2026 · Aditya Gupta
Finance
Related terms
Bubble
An asset bubble is a sustained rise in asset prices well above fundamental value, driven by speculation rather…
Comparative Advantage
Comparative advantage is David Ricardo's foundational economic theory: countries should specialize in producing goods where they have the…
Consumer Price Index
The Consumer Price Index (CPI) is the most widely-cited inflation measure in the US — tracking price changes…
Cost of Capital
Cost of capital is the rate of return investors require to provide capital to a business — combining…
Deflation
Deflation is the sustained decline in general price levels — opposite of inflation. Sounds appealing (things get cheaper!)…
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