> The 'price goes down, yield goes up' generally refers to secondary markets. No. It also refers to the bidding process when the US Govt goes to initiate the

> The 'price goes down, yield goes up' generally refers to secondary markets. No. It also refers to the bidding process when the US Govt goes to initiate the sale of bonds. Regarding the rest: Yes, that is why I included "more or less" in my original post. The bidding for new bonds and the pricing of old bonds is quite close in most circumstances. (If they are not close, then there is usually trouble.) > With a credit rating downgrade, there will be a lot fewer bidders, hence higher interest rates. Regardless of the details above, we both get to the same place.