Yields Flashcards
1
Q
Factors that determine uk bond yields
A
Whether the governments is likely to be able to repay the value of the gift
High levels of private sectors may increase demand for bonds
Rate of return on alternative financial investments offering greater returns, demand for bonds may fall
Consumer/ business confidence falling may drive market demand towards safer assets
High level of inflation devalues bonds
Lower base rate will cause firm to seek bonds increasing price and lowering yields
