How do Treasury Bonds work and how do rising interest rates cause bond value to fall?

324 views

Trying to fully understand how Treasure Bonds value is diminished when federal interest rates rise.

In: 8

12 Answers

Anonymous 0 Comments

Bond prices move the opposite of interest rates. The bonds have different time frames when they mature. Overnight to 30 years.
So, higher bond prices,lower rates.
Lower bond prices,higher rates.

Anonymous 0 Comments

Bond prices move the opposite of interest rates. The bonds have different time frames when they mature. Overnight to 30 years.
So, higher bond prices,lower rates.
Lower bond prices,higher rates.