At present, the size of the international bond market is about $45 trillion. The
bond market outlook presents some optimistic features about the future of this market. The market has produced more than expectation in the second quarter of 2007 The investors and the experts are expecting that the market would go to further heights because the conditions are very favorable at present. United States of America, Britain and Eurozone countries are at present, leading the world capital market.
The bond market or the fixed income market is used by the investors to provide loan to the big companies and the government. In return of this loan, the investor receives dividends and the pre-decided interest rate on the loan amount. The development of this type of capital market is related to the existing interest rate pattern. The rise in the interest rate denotes the fall in the bond market but when the bond market is performing well that means the interest rate pattern is under control.
It is true that the stock markets of the world are developing with a rapid pace and it is obvious too because the yielding capacity of the market is very high. In comparison to this, the bond markets are performing slowly. But at the same time the risk factor related to the bond market is quite low and it is encouraging the investors to invest in this market.
Another important factor, which shapes then bond market outlook of the investors, is inflation because the performance of the bond market is related to the level of inflation. It is true that the inflation rate are becoming a matter of concern but at the same time, it can be said that it is still under control and so the bond market is also expected to do well.
The bond market in US is the most developed market of the world and the turnover of this market is more than half of the turnover of the whole globe and it is estimated about 24 trillion. At the same time, the countries like China and India is also enjoying some good growth in the domestic bond market. Particularly the Chinese short term bond market has raised $27 billion and the long term market raised about $13 billion from the market.