The European bond market is the world’s second-largest debt market, with roughly €35–40 trillion outstanding. It includes government bonds (sovereign debt from eurozone countries, Germany’s Bunds being the benchmark), supranational issuers (e.g., EU and EFSF bonds), covered bonds (especially strong in Germany and Scandinavia), corporate bonds (investment-grade and high-yield), and financial/subordinated debt from banks. Most trading occurs over-the-counter, and the market is heavily influenced by ECB monetary policy and the differing credit quality of eurozone sovereigns.