Because interest rates and bond
prices move in opposite directions, this policy has been a boon for bonds.
They were issued at a time when interest rates were higher, and as rates fell, the price of these bonds rose above their par value (interest rates and bond
prices move in opposite directions).
Because interest rates and bond
prices move in opposite directions; if interest rates rise, the value of a fixed income security falls.
Interest rates and bond
prices move in opposite directions so that as interest rates rise, bond prices usually fall, and vice versa.
The big story this year has been the recent sharp rise in bond yields (recall that bond yields and
prices move in opposite directions) resulting in a sharp drop in the price level of real return bonds and REITs.
Remember, interest rates and bond
prices move in opposite directions, so rising rates mean lower prices for existing bonds.
Treasury
prices move in the opposite direction of interest rates.
Because yield and
price move in opposite directions, O's price rise has caused its yield to plunge.
An easy way to grasp why bond
prices move in the opposite direction as interest rates is to consider zero - coupon bonds, which don't pay coupons but derive their value from the difference between the purchase price and the par value paid at maturity.
So, typically, bond yields and stock
prices move in opposite direction (although this inverse correlation can break down during periods of heightened risk aversion).
(Bond
prices move in the opposite direction of rates.)
And then there's the risk that interest rates will start climbing and cause capital losses, since bond
prices move in the opposite direction.
Rebalance: While stocks have rallied sharply, bond yields have improved somewhat (recall that bond
prices move in opposite direction to bond yields)-- 10 - year bonds are now yielding 3.5 % up from around 3.0 % in March.
Yields and market
price move in opposite directions.
Bond yields and its market
price move in opposite directions.
Remember bond
prices move in opposite direction to interest rates.
Not exact matches
Although the oil
price and the dollar have
moved in tandem for the last few weeks, the two generally tend to trade
in the
opposite direction, as a stronger dollar encourages non-U.S. investors to sell oil and crude - importing countries to curtail their purchases.
Because bond
prices tend to
move in the
opposite direction of stock
prices, you can also buy bond funds to further balance the risk of those stock funds.
If this all occurs while rates are rising, which of course means bond
prices are
moving in the
opposite direction, we could surely see a very sloppy bond market over the next year or two.
Bond
prices, and thus a bond fund's share
price, generally
move in the
opposite direction of interest rates.
Lastly, since the gold spot
price is quoted
in US dollars, its
direction will often
move opposite to the dollar.
It should be noted, however, that this relationship is not perfect;
in certain environments, gold miner stocks and physical gold
prices can
move in opposite directions, and correlation between the two can be less than perfect.
This inversely correlated ETF that tracks the
price action of $ QQQ, but
moves in the
opposite direction.
This is a pattern I call the fakey setup, because
prices make a false break
in one
direction and quickly start
moving in the
opposite direction, so the first
move was «fake out» designed to trap most fo the market on the wrong side.
For fixed income ETFs, bond
prices, and thus an ETF's unit
price, generally
move in the
opposite direction of interest rates.
For fixed income ETFs, bond
prices, and thus an ETF's unit
price, generally
moves in the
opposite direction of interest rates.
If $ TBT (which
moves in the
opposite direction of long - term bond
prices) is poised to head higher, it means long bond
prices are primed to
move lower.
«Stock
prices often
move in opposite directions from fundamentals but long term, the
direction and sustainability of profits will prevail» Peter Lynch
For example, when a market
price moves a large percentage above or below its 50 - day
moving average it usually means that the market is sufficiently extended
in one
direction to enable a significant
move in the
opposite direction (note that what constitutes a «large percentage» will be different for different markets).
When the MFI
moves in the
opposite direction as the stock
price, this can be a leading indicator of a trend change.
Bond
prices and interest rates
move in opposite directions.
The only confusing part to remember about mortgage rates is that the
move in the
opposite direction of mortgage bond
prices.
Prices of the iShares 7 - 10 Year Treasury Bond ETF (IEF A-51) in blue and the iShares 20 + Year Treasury Bond ETF (TLT A-85) in red are both down in the past month, as prices and yields move in opposite direc
Prices of the iShares 7 - 10 Year Treasury Bond ETF (IEF A-51)
in blue and the iShares 20 + Year Treasury Bond ETF (TLT A-85)
in red are both down
in the past month, as
prices and yields move in opposite direc
prices and yields
move in opposite directions.
(Yields
move in the
opposite direction of bond
prices.)
There is also the prospect of
price loss as the Federal Reserve (Fed) has started raising its benchmark lending rate amid a stronger U.S. economy (a bond's yield
moves in the
opposite direction of its
price).
If Amazon tries to profit from market share by jacking up book
prices (and the evidence seems to be that it is trying to
move the market
in the
opposite direction) what is stopping me from getting my books elsewhere?
The bearish harami is a similarly traded pattern, signaling market psychology that is likely to
move price in the
opposite direction.
The tendency of US stock
prices and US dollar to
move in opposite directions.
Either way, the fakey setup is a very strong signal that
price may continue to
move in the
direction opposite the false - break.
The only confusing part to remember about mortgage rates is that the
move in the
opposite direction of mortgage bond
prices.
Share
prices and yield will be affected by interest rate movements, with bond
prices generally
moving in the
opposite direction from interest rates.
In short, these bonds remain both expensive (remember that bond prices and yields move in opposite directions) and vulnerabl
In short, these bonds remain both expensive (remember that bond
prices and yields
move in opposite directions) and vulnerabl
in opposite directions) and vulnerable.
Both bond
prices and yields go up and down, but there's an important rule to remember about the relationship between the two: They
move in opposite directions, much like a seesaw.
Inflation and interest rates behave similarly to bond yields,
moving in the
opposite direction from bond
prices.
There is also the prospect of
price loss as the Federal Reserve (Fed) has started raising its benchmark lending rate amid a stronger U.S. economy (a bond's yield
moves in the
opposite direction of its
price).
As the following graphic from FactSet (via Barron's) shows, bond yields and utility share
prices tend to
move in opposite directions:
Note that any period of significant
price appreciation for bonds may be unusual, as bond
prices generally
move in the
opposite direction of bond yields, which do not typically increase or decrease consistently over extended periods.
Bonds»
prices and yields
move in opposite directions.
Price and yield always
move in opposite directions for a fixed rate security.
Among finance types like me, the fact that bond
prices and interest rates
move in opposite directions is so fundamental and obvious that it is used as a punch line.