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🎓Bonds 101🎓

We all have been hearing a lot about bonds and yield inversions and them being a marker for recession etc etc… but what is it all really?

Complicated stuff - NOT AT ALL!

Let’s go over some quick basics to understand it all and make you a Pro, shall we?… twitter.com/i/web/status/1…
What are Bonds and how do yields move:

Bond is nothing but a Loan Certificate, you loaned $100 of your money to someone and got a certificate back stating they will pay you in so and so time (Tenure) with so and so interest (Coupon).

Now when you try and sell this Certificate/… twitter.com/i/web/status/1…
What is Bond Yield Inversion?

Bond yield inversion is when yield of short term bond becomes higher than yield of long term bonds.

Why it happens you ask? - It’s simple…

if demand for short term tenure bonds is higher than demand for long term tenure bonds, the price of… twitter.com/i/web/status/1…
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