The bond market now has real buyers and sellers

What changed

• •Selling a bond has a limit. The market pays for what you sell from its own cash. If it cannot take the whole order it tells you how many units it can buy right now; interest income refills it every turn.
• •Buying a bond funds the market. The money you pay goes to the bond market for that currency instead of disappearing.
• •Unsold bonds earn for the market. Coupons and repayments on bonds the market holds are paid to it, so it grows with the debt it carries.
• •Central bank operations use the same market. Bond purchases put deposits into it; bond sales draw from it and stop when it runs short.
• •Winding up a company sells its bonds at market price. The estate gets what the market will pay, not face value.
• •No debt, no bonds. A government that has paid off its debt no longer reissues bonds as old ones mature.