In bond trading, BPS is an important part of determining the viability of individual bonds as investments, as any BPS change affects the yields and interest rates on the market.

Here are some ways in which BPS are used in the context of bonds:

• Yield changes - BPS are used to describe changes in bond yields. For instance, if a bond's yield increases from 3.50% to 3.75%, it is said to have increased by 25 basis points
• Spread analysis - When comparing the yields or interest rates of different bonds, analysts often discuss the yield spread in basis points. For example, the yield spread between a corporate bond and a government bond might be described as 150 basis points if the corporate bond yields 1.50% more than the government bond
• Interest rate movements - In discussions about central bank policy or interest rate movements, you might hear references to changes in policy rates in terms of basis points
• Coupon rate - The difference between a bond's coupon rate and its current yield can also be expressed in basis points. If a bond with a 5% coupon has a current yield of 4.75%, the difference can be described as 25 basis points
• Credit spreads - BPS are used to quantify the credit risk premium on bonds. For example, if a high-yield bond yields 500 basis points above the risk-free rate, it means the bond is offering a yield 5.00% higher than a similar-maturity government bond

BPS is not a concept solely tied to the bond market and affects the entire financial system. Interest rates are important tools for central banks to ensure the stability of the economy. 

Interest rate changes affect all aspects of the economy and central banks have to be very cautious when adjusting interest rates, as it can either greatly increase bond yields and reduce stock performance, or vice versa. 

For example, an interest rate increase of 25 BPS, or 0.25%, is not enough to cause a recession within an economy and can serve to slightly cool down inflation. On the other hand, a single increase of 3%, or 300 BPS, will most certainly cause the economy to spiral into a recession, tank the economy, and lead to social unrest. For this reason, BPS is a concept that is not only applicable to bond markets, but the broader economy as a whole. 

• BPS, or basis points, is a concept used in fixed-income markets that represents a value of 0.01%, applicable to interest rates, bond yields, coupon rates, etc
• A 0.25% increase in interest rates represents a 25 BPS increase 
• Depending on the bass point change in interest rates, a central bank may either manage inflation, or lead the economy into a recession