Because bond prices and yields move in opposite directions, the extra yield an investor gets from the former is falling.
And if the prices of your old debt are falling then the yields on that debt are rising (bond prices and yields move inversely) and thus you have to pay more for new borrowings: for the new debt is priced compared to the old.
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The Federal Reserve completed its daily purchase of U.S. long-term Treasury bonds Monday, sending Treasury bond prices up and yields down from the morning's levels.
There was an exodus of income investors who were forced out of the bond market by inflated bond prices and low yields, and into the stock market mostly dividend paying stocks.
And if asset managers turn en masse to bonds with long maturities to match their assets and liabilities more precisely, which is necessary especially for older plans, that will raise bond prices, depress bond yields and increase the present value of assets they must hold again, widening the pensions gap.
Moreover, this weekly index largely comprises indicators that are not revised later, such as share prices, bond yields and commodity prices.
In theory, such a huge increase in purchases should cause bond prices to rise and yields to fall.
The abundance of buyers has pushed bond prices up and sent yields lower, reducing interest payments to investors.
The result was treasury bond prices were inflated and yields declined, creating the lowest treasury yields in history.
German bond prices are rising and yields are shrinking as the flight to safety continues, but check out Brazil.
This aims to drive up bond prices, lowering yields and making debt manageable.
They see commodities at record prices and bond yields moving up.
It is unnatural to have interest rates close to zero and to distort the yield curve by pegging longer-run bond prices at artificially high levels and suppressing yields.
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After an attempted rally ran out of steam this week, Treasury-bond prices resumed their fall, and yields their rise.
Bond prices would fall (and thus yields rise) as investors worried that they would be paid back in a debased currency.
And once Spain has agreed a programme of economic reforms, the ECB now stands ready to intervene in secondary bond markets, pushing prices up and yields down.
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Bond prices and interest rates are inversely related, meaning that as yields fell over the past three decades, bond prices rose.
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That is, how would the Fed manage to eventually reverse its efforts and sell those assets off its balance sheet without driving interest and bond yields sharply higher, bond prices sharply lower, thus hurting the economy and bond investors?
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Since bond yields and bond prices are inversely related, this also means that 10-year Treasuries are priced at historically high levels.
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This is a weighted average of short-term interest rates, corporate-bond yields, share prices and the trade-weighted dollar, with the weights derived from the Fed's model.
If actual growth proves to be better than forecast, then bond yields should rise and prices for the 10-year Treasury note should fall.
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Italian and Spanish bond prices slumped forcing benchmark yields up at a double-digit pace as speculators traded them in for the safer bet of German bunds.
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Over the next 12 to 18 months we expect higher stock prices, more inflation, higher bond yields and a relatively stable dollar.
Of course, when the flows reverse, bond prices will fall, yields will climb, and a tidal wave of dollars will wash up on American shores, drowning consumers in a sea of inflation.
But inflation won't come without a similar rise in interest rates and yields, which means that bond prices, which move in the opposite direction, should eventually fall.
If rates rise quickly, bond prices could fall sharply and cash could start to earn higher yields.
The Fed's efforts to pump trillions of dollars into the financial markets are helping lift prices of stocks and keep a cap on bond yields.
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Investors have to hedge their bets against all three outcomes, which explains the apparently contradictory combination of rising equity and commodity prices, along with low bond yields.
Italy's FTSE MIB index slid 0.7%, and the country's government bond prices fell, pushing yields higher.
U.S. Treasury yields fell Thursday as stocks fell and bond prices rallied, before backing up in the last hour of equity trading.
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