Re:The U.S. Yield Curve Has Inverted
by skiierskyer on Monday December 03, 2018 @05:16PM
(#18593712)
This was corrected above, but for those who are interested:
For bonds, yield and price are inversely related.
Buying a bond means you are lending money now, in return for more money later. The amount you get later is made up of the price you pay now plus the interest, ie the yield. So if the yield goes up, the price goes down. (You don't have to pay as much for a bond when the yield goes up).
Buying a bond means you are lending money now, in return for more money later. The amount you get later is made up of the price you pay now plus the interest, ie the yield. So if the yield goes up, the price goes down. (You don't have to pay as much for a bond when the yield goes up).