In the bond market if the government imposes a limit on the amount of daily transactions, liquidity of bonds relative to other assets will decrease, increasing the interest rate and lowering bond's prices.
In the bond market various debt instruments are bought and sold by a variety of entities. In the bond market, corporations and governments issue bonds in order to raise debt capital to fund operations or seek growth opportunities.
If the government imposes a limit on the amount of daily transactions in the bond market, then bonds will become less liquid with respect to alternative assets, by also lowering bond's prices and increasing the interest rate.
Hence, bonds are issued by governments and corporations when they want to raise money.
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