Why Do Bond Prices and Interest Rates Move in Opposite Directions?

Abstract: Bonds. Just bonds. This November 2023 issue of Page One Economics helps learners navigate the world of purchasing, holding, and selling bonds. In addition to the basics, students will learn that the bond market, where existing bonds are bought and sold, creates a situation where bond prices and interest rates move in opposite directions.

Keywords: bonds; bond market; bond prices; interest rates;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Page One Economics Newsletter

Publication Date: 2023-11