The sum of the sovereign debt emissions by all of the world’s treasuries constitutes an enormous financial market concentrated in a few principal currencies and legal jurisdictions. The money that circulates in these markets is the world’s government (sovereign) debt. These bonds are typically bought by the private sector, but are ultimately paid back (both the principal and the interest) by local taxpayers in the borrowing States. Investors (bond buyers) profit from regular interest payments and an eventual repayment of the principal capital sum. Bonds (or gilts as they are called in the UK) are considered a safer investment than shares in public companies and are often bought by pension funds.

Or at least that is how things used to work.
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