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

回答: JHY-Nuveen fundchunhuacui2016-03-07 17:17:00

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. 

所有跟帖: 

price, not yield, comes down. -noconfusion- 给 noconfusion 发送悄悄话 noconfusion 的博客首页 (0 bytes) () 03/08/2016 postreply 06:58:26

"nowhere go but up"? US will follow Germany, Japan,..., to go ne -career- 给 career 发送悄悄话 (265 bytes) () 03/08/2016 postreply 09:14:37

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