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Article: The Philadelphia Inquirer Business News Column.(Originated from The Philadelphia Inquirer)
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- May 8, 1995
- Author:
CopyrightCOPYRIGHT 1995 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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May 9--BOND YIELDS HAVE DROPPED SHARPLY THIS YEAR, and may drop below 7 percent this week for the first time since early 1994.
And folks on Wall Street are just tickled about it. Say what? Doesn't a lower yield mean an investor receives less? Yes. But that's good - because bond prices go up. Confused? Well, come and join the group. Even people who think they know these things can trip over their laces when they try to remember why, as the experts say, price and yield move in opposite directions.
So, now that interest rates are falling and bonds are going to be in the news a lot, let's take a crack at it.
Here's the first thing to remember: When experts ...