Now stocks are publicly treated so Bonds can be used anywhere in the world to make a business or money deal. Therefore bonds market is called "over-the-counter-market" as compared to the traditional exchange market. A very small amount of bonds are traded in exchange market.
While investors can trade marketable bonds among themselves whenever they want, trading is usually done with bond dealers, more specifically.
The dealers occupy centre stage in the vast network of telephone and computer links that connect the interested players. Bond dealers usually "make a market" for bonds. The role of the dealers is to provide "liquidity" for bond investors, thereby allowing investors to buy and sell bonds more easily and with a limited concession on the price. Dealers also buy and sell amongst themselves, either directly or anonymously via bond brokers.
The major bond investors are financial institutions, pension funds, mutual funds and governments, from around the world. These bond investors, along with the dealers, comprise the "institutional market", where large blocks of bonds are traded. There is no limit on the size of bond trading we do. Similarly there is no size restriction in the "retail market," which essentially involves individual investors buying and selling bonds with the bond trading investment dealers.
Bonds market includes some of the common use terms of market which consist of Coupon, Maturity, Price, Yield, Bid, Offer, Basis Points, Bond Auctions, etc.