This is wild

yield is the interest paid to the bond-holder
as bonds get more expensive the yield declines
so all this money flooding into bonds is driving the yield down

So explain to me like I’m a retard. Is this where I start looking at bonds to buy looking for a high return?

wake me up when the actual important 2yr/10yr yield inverts

Come on user, Im not against people wanting to learn about finance as its a great emancipation tool but thats the kind of stuff you can google...
A yield is the cash return you get on a security (here, the 10 Year treasury).

Nah

I understand options but bonds are just so confusing

what is a security

Chainlink

stop it. you dumb children are going to shoo away the grown ups with any real knowledge

A Jew scam. You have to pay a Jew to hold anything that you think will go up in value.

it's like a beanie baby for adults that deals with companies

>what is talked about 99% of the time on this board
You have to go back OP

You don't have to short anything, bond prices move inverse to the yields so you can just a bond ETF outright. When treasury yields fall a bond trades above purchase price, I.E. if you purchased a 10yr treasury at 2.5% for $1,000 and the yield falls to 1.5% a month later your bond will resell on the market for 1% × 10 (years), so 10% × $1,000 = $1,100 is the market resale price for your bond. The real money is when you get into stuff like leveraged 30-year bond funds, a 100bp drop could yield you upwards of 100% return on the right leveraged bond fund.

Right now long term bonds is a very crowded trade to so resale mechanics are a bit funky and you might actually make more then what you should for these longer term treasuries.

Basically it’s the amount of return you get on debt for the price.

If interest rates lower, the new bonds being issued becomes cheaper, so older bonds become more expensive and their yield goes down

It really isnt, unless you mean security as shitposting

So if the federal reserve LOWERS rates on new debt being issued, investors and traders will pile into old debt that was issued with higher interest.

Given the secondary price of a bond on the market, there’s an “implied” interest rate on the remaining debt. So for example if I have a bond yielding 12% return, a year from today it will pay out so minus the risk free rate I should be paying somewhere between 100 and 112 for it. But...if the market starts buying more and more of this bond for whatever yreaaon, the price will get closer and closer to 112. What’s happening now is that the prices in all debt are effectively OVER 112: investors are so terrified of a banking system collapse that they’re willing to pay more for government debt than they could ever get in return, jus so that they don’t lose all their money in a bank

Honestly the right time to buy bonds was 6 months ago, I made a lot of money off of it infact, but its going to zero within the year IMO. Pic related is a little old but bassically once the fed cuts rates it doesnt stop so even assuming we dont go negative even a 1.5% to 0 yield again is a pretty hefty chunk of change in longer term bonds. Short term there's probably more upside to price in to yields then downside, 75bp under fed funds rate on these riskier long term assets is not sustainable, but if the yield curve stays inverted while the fed does cut these rates to 0 which is possible you will make money. If you do make this play though you really should be watching for signs of an uninversion in the yield curve because thats gonna BTFO your money, right now long term treasuries 10-30yr have less risk priced in then 3-month bonds so if it uninverts you might be looking at the yield actually rising on your long terms even if the rates going to 0.

Can this redpill me on negative yield bonds problem in EU?

Can this thread*

Or they could just buy btc and gold. But what do i know