Bond yields and stock prices are two of the most important measures of the health of an economy. They are also two of the most closely watched indicators by investors. Bond yields are the interest rates that a government or company pays to borrow money. The yield is calculated by dividing the amount of money […]
If Bond Yields Rise What Happens To Stocks
Bond yields and stock prices have an inverse relationship: when bond yields go up, stock prices go down. The reason for this is simple: when bond yields go up, it means that investors are expecting inflation to rise, and they want to get a higher return on their money to compensate for that. In contrast, […]
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