A Primer on Treasury Bonds – Part II: Economics of Treasury Bond yields
March 31, 2015
In my previous column, ‘A Primer on Treasury Bonds’. Daily FT 24 March 2015 (read here), I discussed the key features of Bonds in the context of the Sri Lankan Treasury Bond market.I explained some of the main technical terms such as face value, maturity, interest rate, yield and price as well as the basic market information such as the primary and secondary markets. This technical and market information is essential to understand the operation of Bond markets. Today’s column builds on this basic technical knowledge and elaborates on the economic foundations of Treasury Bond yields.
