Definition
When a bond's price goes up, its yield goes down, and when the price falls, the yield rises.
The story
A bond pays a fixed $50 a year. Bought at $1,000, that's a 5% yield. If its price falls to $900, a new buyer still gets $50 a year, but on $900, a higher current yield of about 5.6%. So "yields rose" and "bonds sold off" describe the same move.
Why markets watch it
Headlines switch between prices and yields constantly, so knowing they're two sides of one coin makes bond news readable.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms