How Bond Market works? | Understanding Debt Market with example | Bond Market in India – Part 1

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The bond market moves when expectations change about economic growth and inflation. Unlike stocks, whose future earnings are anyone’s guess, bonds make fixed payments for a certain period of time. Investors decide how much to pay for a given bond based on how much they expect inflation to erode the value of those fixed payments.
The higher their expectations of inflation, the less they will pay for bonds. The lower they expect inflation to be, the more they will pay.
In Bond market, lower prices correspond to higher yields, and higher prices correspond to lower yields. When prices fall, yields rise, and vice versa.

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Comments

N V says:

Anyone understands why RBI didn't reduce bond interest rates in 7th Feb 2017 (last year), plz let me know. I don't understand it. Thanks in advance!

vikram sambyal says:

Jai hind sir

seshadri g says:

Up load stock market videos intelugu

jerome clem says:

Thank you sir for making me understand how the bond market works. I am a NRi and wondered if you can advise me investments that are like Fixed deposits but with fixed returns, tax free and repatriable. ravindranck1957atgmaildotcom

Shailesh Gupta says:

Thanks…very nice

Kishor Nadekar says:

Thank You very much Sir ! This will help me explain my friend why his bond fund was giving negative returns. Though he has now moved that money to equity funds.

ks charan says:

i couldnt understand properly how economic growth affects

Chetan Choudhari says:

If fiscal deficit decreases then bond trader will buy or sell the bond

Chetan Choudhari says:

If SLR goes down then bond trader will buy the bond or sell the bond ? and why

Deepak Chauhan says:

you made me to understanding it in simple language… 🙆 Thank you.

indian indian says:

Sir,I'm looking for how a bond is traded and the entire cycle..

devvarun mishra says:

Best really so simply you explained everything thank you so much

Hampanna Chatnalli says:

Wow what a clarity. Really appreciate. Thanks

Asha Kothari says:

Sir, why are the yields rising in bond market now…pls help clear this confusion.Thank you.

4 KNIGHTS Productions says:

good explanation

Sujit Dhas says:

Should I invest in dynamic bond funds? What are the things that I should know before investing?

AJ 777 says:

What are the taxes on debt funds?

Sujeet Singh says:

Thanks for another informative video. Plz make a video on recapitalization of bank announced by govt recently. TIA

Girish prusty says:

Thank you sir

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