Sentences with phrase «value of existing bonds»

«The value of existing bonds are going to get hammered,» Marrion said.

«We have a rising interest rate market and in Finance 101 you learn that when interest rates go up, the value of existing bonds goes down,» he added.

Mortgage rates follow the path of the benchmark 10 - year U.S. Treasury note TMUBMUSD10Y, -0.63 %, which has been under pressure this year as investors expect a faster pace of inflation, which would erode the value of existing bonds, and more borrowing by the U.S. government to patch big deficits.

Since Inflation = Higher Interest Rates and rising rates reduces the value of existing bonds issued at lower (currently near zero) rates, they don't look to good as a long term investment either.

If interest rates are due to rise in the future, it's relatively safe to say that the value of existing bonds is at risk to some degree.

Interest rates and bond values have an inverse relationship; rising interest rates will reduce the value of existing bonds while falling rates will increase their value.

That would push interest rates up, and push down the value of existing bonds.

As interest rates rise, the value of existing bonds typically falls because the interest rate on new bonds would be higher.

When interest rates rise, the value of existing bonds will typically fall on the secondary market.

When interest rates go up, the value of existing bonds goes down.

Short - term bond funds face a lower risk from interest - rate increases (changing interest rates influence the value of existing bonds inversely).