The concept
Bonds are loans to governments or companies. When bond prices fall, yields rise. U.S. Treasury yields are a global benchmark.
Why it matters
Yields set the 'risk-free' return other assets compete with.
How markets interpret it
The 2-year yield tracks Fed expectations; the 10-year reflects growth and expectations.
How it may relate to gold
Rising yields raise the of gold.
Key takeaways
- Price up = yield down.
- Treasuries are the global benchmark.
Knowledge check
If bond prices fall, yields…