The incident, which occurred around 9.45pm in the night threw the area into pandemonium as traders and residents ran for cover.
The Bauchi State Police Command spokesman, Haruna Mohammed, confirmed the incident in a statement. He said that investigations had commenced.
He added that all 11 corpses were evacuated to the mortuary, while injured persons had been taken to the Abubakar Tafawa Balewa University Teaching Hospital for treatment.
The affected area has been cordoned off as Police has commenced investigations to ascertain the cause of the explosion.
No terrorist group has claimed responsibility for the explosion yet, but it seems to have been carried out by the Boko Haram insurgents.
The Police has again urged members of the public to always be more security conscious by paying attention to persons and objects, particularly at motor parks, market places, schools, places of worship, shopping malls, eateries and hotels.