It’s A Global Issue Now! Bonds Yields and Rates. Bundesbank Halts Interest on State Cash!

How rate increases have evolved into a pressing global issue.

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In finance and economies, one country's financial markets can greatly impact the rest of the world. There has recently been much talk about rising bond yields and interest rates. This is a complicated issue that affects many countries and has important consequences. Let's explore this issue together and understand what it means for the world.

The Basics:

What is a bond yield?

• Bond yield is the money an investor can make from a bond. It is usually shown as a percentage and shows how much income the bond will give each year compared to its current price.

What is an interest rate?

Interest rates are the money you have to pay back when you borrow money or the money you earn when you lend it. It is a percentage of the total amount you borrowed or lent over a certain time. The central bank or monetary authorities usually decide the interest rates, and they affect things like how much it costs to borrow money, how much you earn from saving, and how much you make from investing in bonds.

How do they relate?