Re:The U.S. Yield Curve Has Inverted
by throwaway4job on Monday December 03, 2018 @05:06PM
(#18593597)
Not quite that.
Bond prices go down when interest rates go up. As such, an investor who thinks that interest rates will go _up_ will reallocate from long-term bonds to short-term bonds, rather than the opposite as you stated.
Bond prices go down when interest rates go up. As such, an investor who thinks that interest rates will go _up_ will reallocate from long-term bonds to short-term bonds, rather than the opposite as you stated.