The 22-year-old joined the Royals on a permanent deal just over a week after returning from European Under-21 Championship.
And he is now expected to press for the No1 jersey at last year’s FA Cup semi-finalists, with boss Steve Clarke expecting him to flourish at Madejski Stadium.
Clarke told the club's official website: "I’m delighted that we have managed to secure the signature of one of English football's brightest young goalkeepers.
"Jonathan is at the stage of his career where he needs a new challenge and the opportunity to establish himself as first-choice goalkeeper.
"He has all the attributes needed to reach the very top and, with the help of [goalkeeping coach] Dave Beasant, it is our aim to get him there.
"With Jonathan joining Stuart Moore in our ranks we believe that our goalkeeping department is starting to look very strong again.
"It is my intention to bring one more experienced goalkeeper to the club to complement the young talent that we now have."
A graduate from Watford's academy, Bond has played five times for England Under-21s, making his Young Lions debut in the 9-0 win over San Marino in 2013.
