A police officer, who asked to remain anonymous, said the explosion ripped through a market in northeastern Baghdad.
A police officer, who asked to remain anonymous, said the explosion ripped through a market in northeastern Baghdad leaving "11 dead and 26 wounded".
Members of Iraq's security forces were among the victims, medical sources said, confirming the toll.
Security sources said the bombing occurred near one of Baghdad's largest shopping centres at around 10:30 am (0730 GMT).
The casualties were evacuated to two hospitals in Sadr City.
There was no immediate claim of responsibility for the attack, but the Islamic State jihadist group has claimed previous bombings in the capital.
The explosion damaged several stalls at the market and gutted shops in the adjoining shopping centre, with debris, glass and vegetables strewn across the ground, an AFP reporter said.
Bulldozers were still at midday trying to clear the area, including removing two cars destroyed in the bombing.
The mangled hull of a vehicle suspected of being the car packed with explosives could be seen in the area.
The bombing came as Iraqi forces and the Hashed al-Shaabi paramilitary coalition dominated by Shiite fighters, some from Sadr City, battle IS members in their last pocket in the northern province of Nineveh.