Governments raise funds by issuing bonds, which are IOUs that pay a fixed rate of interest over a period of time. Investors can buy and sell bonds on financial markets, with the price fluctuating based on interest rate expectations and risk of default. The yield, or return, on a bond depends on its price - if the price falls, the yield rises. A government's bond yields indicate how much interest it must pay to issue new bonds. German government bonds are considered a benchmark in Europe. Individual German investors hold between 10-15% of bonds, mostly through mutual funds and pension/retirement accounts rather than direct purchases.