The market in which instruments of fixed-income debt are issued and traded.

Bond markets facilitate the transfer of capital from savers willing to lend to borrowers seeking investment. The market primarily deals with government and corporate-issued securities, issued in order to finance government spending, the expansion or continuation of business operations.

Structurally, the debt market is an over the counter market composed of a primary market, where dept is originally issued, and a secondary market where existing debt is exchanged.

Measured by amount of dept issued and volume traded, the debt market is one of the largest markets in the US. Easily four times larger than the US stock market.

Because the vast majority of the market involves fixed-income debt, where interest payments are a preset nominal amount paid in regular increments, inflation expectations play a key role in deterring debt market developments.