Bonds have a coupon yield attached to them. Say 100 dollars bond has a coupon of 1 dollar/year. This makes it a 1% yield. So you buy the bond for a 100 and you get the 1 dollar/year in yield. However you can sell and buy bonds like a stock. Now that all the bonds are distributed, it's now tradable on the open market. So if someone is willing to get that dollar every year but pay 110 dollars, you can sell it to that person for 110 dollars. This bond yield effectively went DOWN because it's now for 110, you get the 1 dollar, meaning yield is now 0.9%. The opposite is true, if there are no buyers because everyone sees higher interest rates elsewhere, then a lot of the time you have to match them just to get rid of your bond if you want to sell. So you can let go of your bond for 90 bucks and that will yield a 1 dollar/year, or 1.1% yield.
So if people are anticipating rates will go up, then people will wait for those newly issued bonds with higher yields and not want yours until you are willing to price match. This is why bonds are crap investments during low interest rate era because it can only go down as rates eventually goes up.
thank you for this explanation. Makes a ton of sense now. So basically, bond holders were trying to get rid of the 10 year TTL and hence the yield increased by about 0.5%. Understood.
Its such a pity that this BIG/conservative money that buys Bonds, would probably not chase Bitcoin or Tesla as its investments