3 years, 2 months ago
Is the bond market profiting from high bond prices?
The fed bought $300 billion in long term US treasuries. Yields dropped to 2.53% and bond prices climbed.
In this scenario, do bond traders profit from the increase in bond prices?
With lower yields decreases how does this affect foreign investment?
In this scenario, do bond traders profit from the increase in bond prices?
With lower yields decreases how does this affect foreign investment?
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Is the bond market profiting from high bond prices? Yes! You can buy and sell bonds just like you do stocks. So if you purchase low, and sell high, you make a profit.
With lower yields decreases how does this affect foreign investment? Although interest rates obviously play a roll in bonds, the fact that bond prices are going up will probably mean that foreigners will still be interested in investing, even if it is at a lower interest rate.
With lower yields decreases how does this affect foreign investment? Although interest rates obviously play a roll in bonds, the fact that bond prices are going up will probably mean that foreigners will still be interested in investing, even if it is at a lower interest rate.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
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