nlipner

Fed Funds Rate Has To Climb To 6%, Then Fall

Sir, did you perhaps make a typo in this statement ?

• When Fed Funds fall, so do bond yields. That is because people want to lock into the higher rates provided by bonds, so they buy high yielding bonds, driving down their prices. So up go the yields.

More demand for the bonds should increase their price and reduce the yield, not the opposite as you stated. Correct ?