Economic lens
Markets
2 questions that expose connected mechanisms beneath this part of the world.
All lenses5 min Lever
Why does a bond's price fall when interest rates rise?
A fixed-rate bond keeps promising the same cash flows. When new bonds offer higher yields, investors will buy the old bond only at a lower price that makes its unchanged payments competitive.
5 min LeverWhat are futures, and why do they matter even if you don't invest?
A futures contract standardises a price for a later transaction. Producers and users hedge uncertain prices, while trading helps form benchmarks that influence physical contracts, planning, inventories and eventually the prices households face.