In Reply to: Forget the stock market. Keep an eye on bonds. posted by mh on April 09, 2025 at 10:03:18
but aren't US Treasury bonds offered at a fixed interest rate, the underlying price of which varies according to subsequent interest rates? In other words if a bond is priced at 5% and a few months later the treasury has to offer a 6% interest rate to entice buyers, then won't the underlying price of the 5% bond drop so that it too shows a 6% yield?
If China is selling US Treasury Bonds they bought at lower interest rates, then aren't they losing money on the sale?
All of this is way above my pay grade, but maybe you can map it out for me?