If treasury bonds yields are higher that means their Treasury bonds prices are low so their demand should go up right? but in the curruculum, they say their demand will go down when treasury bonds yeilds are higher. Please explain?
I believe that it’s more the other way round: low demand leads to low prices which leads to higher yields.
Low demand usually occurs during economic expansion: investors are selling off bonds to get money to buy stocks which will have even higher yields. The yields on bonds increase, but not as much as stock yields.
Got it thank you!
You’re welcome.