Bond Volatility Reaches All-Time High Amidst Anticipation of High Interest Rates

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Bond Volatility,Interest Rates,Investment-Grade Bonds

Amidst anticipation that interest rates in major economies will remain high in the near future, has once again pushed bond volatility to an all-time high. Investors are rushing to sell off their existing bonds due to falling bond prices and lower returns on their investment portfolio.

Amidst anticipation that interest rates in major economies will remain high in the near future, has once again pushed bond volatility to an all-time high. If you are, perhaps it is a good time to evaluate if you should rush to sell them off or put more money into investing in investment-grade bonds while prices are falling.When investors expect higher inflation in the future, they will demand higher yields to compensate for the decreased purchasing power of future bond payments.

This leads to lower bond prices., sustained demand for some goods and services and geopolitical issues. As a result, investors are rushing to sell off their existing bonds because the falling bond prices are bringing in smaller interest payments and lower returns on their investment portfolio., newly issued bonds offer higher yields, making existing bonds with lower interest rates less attractive. This naturally leads to falling bond prices. Conversely, when interest rates fall, existing bonds with higher fixed interest rates become more valuable, causing their prices to ris

 

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