• Treasury Bills (T-bills): These are short-term debt instruments (usually less than a year in tenure) sold at a discount and redeemed at face value at maturity. T-bills are commonly used by the government to finance short-term funding.

• Government Bonds: A long-term security with fixed interest payables over years. They are suitable for investors who require consistent return over a longer period.


2. Corporate Bond Market:
Companies raise cash through corporate bonds for various objectives, like expanding their operations or refinancing debt. Corporate bonds have a higher interest rate compared to government bonds simply because they involve risk with their corporate issuers.