MARKET ESSENTIALS
Why bond yields matter far beyond the bond market
Understanding the connection between yields, financing costs and asset valuations.
Price and yield
For a conventional fixed-rate bond, price and yield move in opposite directions, all else equal. Changes in yields can reflect interest-rate expectations, inflation expectations, credit risk and demand.
Read the curve
A yield curve compares bonds across maturities. Its shape offers context rather than a certain prediction. Currency, issuer, liquidity and measurement time must be consistent for a useful comparison.
Educational content. This article does not report a current market event or provide a trading recommendation.