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Ignoramus3517

On 2013-09-21, wrote:
On Friday, September 20, 2013 2:03:12 PM UTC-4, jim wrote:

You make a lot of unsubstantiated assumptions. Bond yields are

low because the demand for bonds is extraordinarily high. Just

because a reporter gives the FED credit doesn't make it so.

Nobody has twisted arms to get people to buy more bonds. The

FED didn't create the demand for low risk assets.

So you are saying that high demand has resulted in lower interest rates?

If that is true, why does a high demand for Gold result in higher prices?

The interest rate is the opposite (inverse) of price, when we talk
about bonds. The lower the interest rate, the higher the price of
bonds.

For example, to simplify, a bond that promises to pay $100 in a year,
would cost $91 if the interest rate is 10%, and $99 if the interest
rate is 1%. The 1% bond is higher priced.

i