What is the primary function of a trader in the context of bond markets?

The primary function of a trader in the context of bond markets is to establish positions and execute trades. Traders actively engage in buying and selling bonds, making decisions based on current market conditions and potential price movements. Their aim is to achieve profitable trades by capitalizing on price discrepancies and market fluctuations. By executing trades, they provide liquidity to the market, which facilitates the flow of bonds between buyers and sellers.

While analyzing market trends is important for traders to inform their trades, establishing positions and executing those trades is the fundamental role they fulfill in the bond markets. Issuing new bonds pertains to the activities of issuers and underwriters rather than traders. Managing bond portfolios is a role associated more with portfolio managers, who focus on long-term investment strategies rather than short-term trading actions. Therefore, the emphasis on establishing and executing trades underscores the trader's vital role in the dynamics of the bond market.