Bonds

Bonds - The price of a bond (part 2)

Level: Beginner / Length: 13 minutes

Following on from part 1, we now need to understand the market influences that can change the price of a bond. This second tutorial on bond prices will explore the primary market factors that can cause prices to change.


Several factors affect bond prices and we’ll explain these in this module

Are there differences between government and corporate bonds?


The objective of the tutorial is to give you the ability to assess why a particular bond price has changed and what might cause it to change in the future. Changes in bond prices will always have an immediate effect on your bond trading profits and losses so you’ll need to be aware of these factors. 

We’ll explore:

  • Why bond prices change?
  • Current interest rate or yield to maturity
  • Changes to interest rates
  • Liquidity premium

IMPORTANT INFORMATION

The materials published on all Saxo Group websites should not be considered as financial, investment, tax, trading or other advice, or recommendation to invest or disinvest in a particular manner. Saxo Markets assumes no liability for any losses resulting from trading in accordance with a perceived recommendation or reliance on Saxo material. Past performance is not indicative of future results.

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.