The relationship between interest rates and bond prices is —much like a seesaw.
: When new bonds are issued with higher interest rates, existing bonds with lower rates become less attractive, forcing their market price down. should i buy bonds when interest rates are rising
The Fixed-Income Paradox: Investing in Bonds During Rising Interest Rates The relationship between interest rates and bond prices
Whether you should buy bonds when interest rates are rising depends heavily on your and income goals . While rising rates initially cause the market value of existing bonds to fall, they simultaneously create opportunities for higher long-term yields and more robust future income. The Core Conflict: Prices vs. Yields should i buy bonds when interest rates are rising