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Doubt Clearance Thread: UPSC 2021


Economics Bond price and Bond Yield Question


A fall in interest rates makes bond prices rise, and bond yields fall — and rising interest rates cause bond prices to fall, and bond yields to rise. In short, a rise in bond yields means interest rates in the monetary system have fallen, and the returns for investors (those who invested in bonds and govt securities) have declined.



From Article - https://indianexpress.com/article/explained/explained-what-rise-in-bond-yield-means-for-investors-and-govt-7205054/

What exactly is "interest rate " mentioned in para- Repo rate or rate of return or what?


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@balwintejas are you sure interest rate mentioned is market rate of return??


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