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

Saxo Markets
3 Church Street, #30-00
Samsung Hub
Singapore 049483

All departments are available 08:30 to 17:30 Monday to Friday.

Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.