Bond Market

The bond market is a financial market where participants buy and sell debt securities, usually bonds. While the stock market attracts most of the media attention, the bond market is much larger in size and arguably more important. A 50% drop in a stock’s price may cause no harm to its overall business prospects, but a general increase in interest rates could have a far more fundamental impact on the business. Thus, investors who attempt to analyze the economy may find it worthwhile to pay attention to the bond market.

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