Re:Interest Rates: Naturally Negative?
by pbk1 on Wednesday August 14, 2019 @01:26PM
(#20697775)
Piggy backing off of this followup, bond prices move inversely with yields. Ceteris paribus, a -0.5% yielding bond commands a higher price than a -0.1% yielding bond. Bonds are quoted in yields but traded on a dollar price (typically as a percentage of par) hence the capital gain I implied above being realized with the higher price should yields/rates fall further.
[ Parent
| on HN ]
There are no comments on this comment yet.