In "The Ascent of Money," Niall Ferguson explains that bond markets hold significant influence over the overall financial landscape. This influence stems from the fact that they serve as the foundational base for all other markets. The dynamics within bond markets dictate the cost of credit and, consequently, impact interest rates.

These interest rates, particularly those on benchmark bonds, play a crucial role in determining the value of various asset classes, including stocks and real estate. Thus, any changes in the bond market can lead to wide-reaching effects across the entire economy, affirming the assertion that bond markets are pivotal in shaping financial realities.