From The Economist: A Very British Banking Crisis.

When a bond is exchanging hands in the bond market, we are seeing two goods being exchanged: the bond and the use of funds. Explain.

What factors affect bond demand and supply? Why does the bond supply curve slope up and the bond demand curve slope down in the bond market diagram?

How is the bond market related to the loanable funds market? If bond prices are currently above equilibrium, what can we infer about the pressure on interest rates in the loanable fund market? Why?