Bond Market FAQs:

Q: Is a bond market part of the credit market?

A: Yes, and with bank loans forming the other main component.

Q: Is a bond market often used to indicate changes in interest rates or the shape of the yield curve, the measure of "cost of funding"?

A: Yes, The yield on government bonds in low risk countries such as the United States or Germany is thought to indicate a risk-free rate of default.

Q: Is a bond market the government bond market?

A: Yes, because of its size and liquidity.