Why do bond yields go down when there is fear of recession/due to the trade war?

Question

Why do bond yields go down when there is fear of recession/due to the trade war?

In: Economics

Answer 1

Bond yields move in the opposite direction of bond prices.

So what’s really happening is people are buying bonds when there’s fear of recession. In a recession, businesses get less valuable because they make less money, but bonds pay the same amount as long as the payer survives.

So, bonds are a better investment during a recession and people buying bonds means they think it’s more likely that a recession may occur, bond prices become a good predictor of recessions.