When Does U.S. Bond Market Open ?
| A bond market can be explained as a financial markets where buying and selling of bonds takes place. A bond can be defined as a debt obligation or a security that an issuer gives to a bond holder or a buyer. |
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According to this debt obligation, the issuer promises to pay the bond holder the principal and the interest amount at the time of maturity, a date in the future. Bond markets rightly determine the financial health and economical status of a nation. Estimated size of international bond market is more than $45 trillion.
As per The Securities Industry and Financial Markets Association (SIFMA), bond markets can be classified into different categories depending on the bond issuer. These include government bonds, corporate bonds, municipal bonds and mortgage-backed and asset-backed securities.
Also termed as fixed-income markets, debt markets or credit markets, bond markets in most countries are decentralized. This means that there is no central exchange for trading bonds. As a result, trading of bonds mostly occurs between brokers and financial institutions in an over-the-counter (OTC) market. Only a fraction of these securities are listed on stock exchanges. Hence, it is different to determine the exact trading hours in a bond market. These timings differ from country to country.
The United States has the largest centralized bond market known as the New York Stock Exchange (NYSE). With around 2,764 listed securities, NYSE is also the largest stock exchange in the world in terms of dollar volume. As of 2006, estimated size of the US bond market debt was $25.2 trillion. Since September 30, 1985, trading in the NYSE opens at 9.30 am and closes at 4.30 pm.
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When Does U.s. Bond Market Open