If interest rates are cut by 1%, it would likely have a positive impact on a fund that holds long term bonds like the TLT. Here's why
Bond prices tend to rise: When interest rates are cut, the prices of existing bonds with higher interest rates become more attractive to investors. This is because the interest rate on these bonds is now higher than the prevailing market rates, making them more valuable. As a result, the prices of long-term bonds tend to rise when interest rates are cut.
What Happens When Interest Rates Are Cut By The Fed?
Bond...
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