Daesh has claimed responsibility for the blasts, caused by a suicide bomber and a planted explosive device.
Two bombs exploded in a busy market area in central Baghdad on Saturday, killing at least 27 people and wounding 57 others, Iraqi police said.
On its website Amaq the Daesh terrorist group later claimed responsibility for the blasts that went off near a shop selling spare car parts in Al-Sinak neighbourhood during the morning rush.
An Interior Ministry official said that one of the blasts was triggered by a suicide bomber and the other by a planted explosive device.
Daesh lost most of the northern and western territory it seized in 2014 after Iraqi forces began an offensive to retake Mosul, the group's last major stronghold in Iraq. But it continues to launch attacks in the heavily fortified capital.