How changing interest rates impact the bond market - U.S. Bank
Buying bonds is fundamentally linked to interest rates through an : when interest rates rise, bond prices generally fall, and when interest rates fall, bond prices rise. This "seesaw" effect occurs because existing bonds with fixed lower rates become less attractive compared to new bonds issued at higher current rates. Key Bond-Rate Dynamics buying bonds interest rates
: Bonds with longer durations (longer time to maturity) are more sensitive to interest rate changes and experience sharper price swings than short-term bonds. Strategic Considerations for Investors How changing interest rates impact the bond market - U