How are bond prices affected by interest rates
30 Aug 2013 Why do bonds lose value when interest rates rise? What can you do to To explain the relationship between bond prices and bond yields, let's use an example. First, let's disregard How Fear Affects Bonds. PROMOTED. 16 Oct 2019 When the Fed raises or lowers rates, it affects bonds' prices to let's back up and explain why changing interest rates affect a bond's price. If the market expects interest rates to rise, then bond yields rise as well, forcing bond prices, in turn, to fall. Here's a look at the inverse relationship between