>>62227223
no, seriously, can anyone here confidently say they have a proper understanding and overview of the government bonds trading?

passing the SIE should be a requirement to post here

the tldr is theres nominal value vs market value. they rarely match each other.

>>62227450
in his defense the whole reason he's asking is because he doesn't know shit.

>>62227223

Let the goyim deal in the real world.

>>62227223
imagine you buy a $100 bond that has a coupon of 5%. its yield is 5% a year. you would get $5.00 of interest. at this point the yield and coupon are the same.

now imagine the fed raises rates to 7% and issues new bonds with a coupon of 7%. now there is less demand for the 5% coupon bond you hold because there are higher interest bonds available.

people sell their 5% bonds so they can buy the better 7% coupon bonds. the price of the 5% bond goes down because there is less demand for them.

your coupon is still fixed at 5% but the price of the bond is lower which means you have lost some money, this decreases the total yield of the bond.

>>62227429
>a proper understanding and overview of the government bonds trading?
Yes, its a scam. Fed is a private bank that has infinite fiat currency printing ability. It gives money to the owners (banks, business, rich families), creates fiat out of nothing and buy government bonds and the government pays back the fiat with interest it had to borrow from more bonds. The bond yields are invesre to interest rates (look it up, its just the rules of the game they invented). If no one wants to buy the government bonds the prices would fall (yields would rise) but the fed or member banks step in to buy them to keep the prices up and interest rate down, the sell them to the fed. During the 2008 MBS crisis when the MBS were not worth anything the Fed created a "facility" to buy all that shit at full price from the banks and eat the loses, and paid out insane money to save the CDS market and save the big banks who foreclosed on all the homes.