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When interest rates rise, bond prices fall. So when you see interest rates rising, that means there is more selling pressure than buying pressure. Just like a
by panarky 8y ago
When interest rates rise, bond prices fall.
So when you see interest rates rising, that means there is more selling pressure than buying pressure.
Just like anything else, it is harder to sell bonds and get the price you want when bond prices are falling (and interest rates rising).
It's easier to sell and get a good price when bond prices are rising (and interest rates are falling).
- A2017U1 8y agoIn general demand is higher for bonds as their prices fall. They are both cheaper and paying better rates. This is econ 101.
- wahern 8y agoThe rates are better for newly issued bonds. Existing bonds become devalued. The point (IIUC) is that unwinding is a tricky proposition and dependent on the mix of maturities.