Definition
A loan you make to a government or company. It pays you interest and returns your money on a set date.
The story
Buy a $1,000 bond paying 5% for 10 years and you collect $50 a year, then get your $1,000 back at the end, as long as the borrower doesn't default. Treasuries are bonds issued by the US government; corporate bonds are issued by companies.
Why markets watch it
Bonds are a core part of many portfolios, and their yields shape borrowing costs everywhere.
Connects to
Treasury bills, notes and bondsBond prices and yieldsCouponCredit ratingTreasury yield
Last seen in
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms