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Economy

IbogaProject

(3,776 posts)

3. Bonds go up when interest rates decline

Reply to Mike 03 (Original post)

Fri Nov 22, 2024, 11:30 AM

Nov 22

We are in an "easing" of interest rates phase now. But if Mr Tmp pulls any amount of his team's harebrained plans the US Treasury Bond market may react badly. If those bond interest rates go up if the market perceives risk the bond prices would fall. If inflation goes down and government borrowing and debt service (interest payments) remain consistent than bond prices will improve. If any thing causes market unease or if actions cause inflation or debt default those will decrease bond prices.

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Can someone help me decipher this Bloomberg view [View all] Mike 03 Nov 22 OP

I think it's more a statement about inflation going forwardq bucolic_frolic Nov 22 #1

Thanks. Mike 03 Nov 24 #6

Here's an article from NPR Joinfortmill Nov 22 #2

Ooh, interesting! Mike 03 Nov 24 #7

Bonds go up when interest rates decline IbogaProject Nov 22 #3

Great information. Mike 03 Nov 24 #8

I don't know, but most interest rates have RISEN since the Fed's cuts nmmi Nov 22 #4

Exactly! Some of the anchors on Bloomberg were talking Mike 03 Nov 24 #9

Yes the price shifts more the longer the bond duration IbogaProject Nov 24 #11

I have a portion of my IRA in bond funds MichMan Nov 22 #5

That's interesting. Mike 03 Nov 24 #10

All bond funds purchased pre-inflation have been lackluster nmmi Nov 25 #12