Bond fell意思

"Bond fell" is a term used in the context of bond markets, where "bond" refers to a type of investment security that represents a loan made by an investor to a borrower, typically a government, corporation, or other entity. When someone says "bond fell," it means that the price of the bond has decreased.

Bond prices and yields have an inverse relationship, which means that when the price of a bond falls, the yield (the annual interest payment as a percentage of the bond's face value) increases. Conversely, when the price of a bond rises, the yield decreases.

There are several reasons why a bond's price might fall:

1. Interest rate changes: If interest rates in the market rise, existing bonds with lower interest rates become less attractive to investors, and their prices fall as a result.

2. Creditworthiness: If the issuer of the bond is perceived to be at higher risk of default, the price of the bond may fall as investors demand a higher yield to compensate for the increased risk.

3. Supply and demand: If there is an oversupply of bonds in the market or if investors are selling bonds, the price of bonds can fall due to decreased demand.

4. Maturity: Longer-term bonds typically have more price volatility than shorter-term bonds, and their prices can be more sensitive to interest rate changes.

5. Inflation expectations: If investors expect inflation to rise, they may demand higher yields on bonds to compensate for the expected decrease in the purchasing power of the bond's fixed interest payments.

It's important to note that when discussing bond prices, the term "fell" typically refers to a decrease in price, not the physical act of the bond being dropped or lost. In financial markets, "falling" means a decline in value or price.