Gross domestic product (GDP) is the market cost of goods and services produced within a certain period. GDP growth is accompanied by the rise of the economy and leads to an increase in the exchange rate, as well as an increase of stocks in the equity market. For the bond market, GDP growth will be a negative signal. Since GDP growth often leads to an increase in interest rates, the interest in bonds as in instruments with fixed income will fall and their yields will rise accordingly.
GDP is the most important indicator reflecting the state of the national economy.