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>I wish the western allies would dump their US bonds to drive bond yields into the ground Dumping bonds would increase supply and drive down prices, but that i
by gruez 1y ago
>I wish the western allies would dump their US bonds to drive bond yields into the ground
Dumping bonds would increase supply and drive down prices, but that increases yields because yields is the difference between the price you paid vs the face value of the bond.
- tromp 1y agoBond yield is the return an investor will realize on a bond, so driving down prices decreases yields. Sure, it can increase the absolute value of yield as it heads into the negative...
- gruez 1y agoNo, because "yield" almost always refers to yield to maturity.
- throwawayqqq11 1y ago*Bond yields for the US. When US bonds enter the secondary market at a discount, buyers are inclined to prefer them over the US-offerend ones who need to raise interest rates to stay competitve, so making them more expensive for the US.