: When new bonds are issued with higher interest rates, existing bonds with lower rates become less attractive, forcing their market price down.
The relationship between interest rates and bond prices is —much like a seesaw. should i buy bonds when interest rates are rising
: For new buyers, rising rates are a "buy" signal because they can lock in higher coupon payments than were available previously. Why Buying Might Make Sense : When new bonds are issued with higher
: Investors can reinvest interest payments and maturing principal into new bonds at these higher prevailing rates, boosting the portfolio's long-term growth potential. should i buy bonds when interest rates are rising
Despite the immediate price drop, several factors make bonds attractive in a rising rate environment: