The rule is: when interests rate goes up, bond yield comes down

来源: 于 2016-03-08 06:22:53 [旧帖] [给我悄悄话] 本文已被阅读：次

The rule is easy to understand: if everyone can buy a 4% bond on open market when interest rate goes up in 2017, why would anyone pay high price for a 3% bond issued in 2015?

Interest rate is effectively 0 now.  It has nowhere go but up.  So today's bond will worth less tomorrow when interest rate goes up.

For this reason, no bond buying for the near future.