Market guide
Bonds and rates education guide
Rates markets affect borrowing costs, currency pricing, equity valuations and macro sentiment. Bond education starts with prices, yields and the yield curve.
What bonds and rates are
A bond is a debt security issued by a government or company. After issue, bond prices and yields usually move in opposite directions. The yield curve compares yields across maturities and is watched for signals about inflation, central-bank policy, growth expectations and risk appetite.
Key terms
Yield
The return measure investors use to compare bonds.
Yield curve
A line comparing yields across different maturities.
Basis point
One hundredth of a percentage point.
Duration
A measure of sensitivity to interest-rate changes.
What to learn next
- Why bond prices and yields move inversely.
- How central-bank decisions can move short-term rates.
- How inflation expectations can affect longer-term yields.
- How rates can influence FX, equities and commodities.
Useful references
Related guides
General education only
This content is general education only and does not consider your objectives, financial situation or needs. Bond and rate exposure carries interest rate and credit risk. Availability and suitability depend on account approval and relevant terms.