QUICK DEFINITION
Money Market is the market for short-dated borrowing, lending and highly liquid instruments, generally with maturities of one year or less.
WHY IT MATTERS
Why Money Market matters in bond markets
Money markets transmit central-bank policy directly into funding conditions across the financial system.
MARKET CONTEXT
How to think about it
Bond investors use money market as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Money Market important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Money markets transmit central-bank policy directly into funding conditions across the financial system.