Blog Post: Day 2 of $QQQ short term down-trend; 23 US new highs and 157 lows, most since May 2nd; long treasury bonds in steep decline as interest rates climb, see $TLT; why interest rates move inversely to bonds prices explained


The Wall Street saying is that interest rates move inversely to bond prices. This is like when a stock price declines the dividend yield rises. For example, a stock that pays $4 per year would have a yield =4%%,  if the stock’s price were $100 (4/100=4%). If the dividend remains the same and the stock price falls to $50, the yield would climb to 8% (4/50=8%).  So it is with bonds which typically have a fixed interest rate/dividend. Falling bond prices = higher interest rates. TLT gapped down on Thursday.

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