Research on the Interest Rate Risk Strategy of Bond Market

Zekang Li

doi:10.54254/2754-1169/16/20230978

Research Article

Open access

Published on 13 September 2023

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Li,Z. (2023). Research on the Interest Rate Risk Strategy of Bond Market. Advances in Economics, Management and Political Sciences,16,65-70.

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Research on the Interest Rate Risk Strategy of Bond Market

Zekang Li *^,1,

¹ Hong Kong Metropolitan University

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/16/20230978

Abstract

Compared with stocks, bond investment can not only reduce relatively large risk losses, but also ensure that the investment status is healthy and stable. However, whether the product trend in the bond market can be used as a tool for monitoring economic conditions is a question worth pondering. This article’s main function is discussing why the bond market is useful and the influence and difference of bond’s maturity and interest rate for the economy and investor. Through the research and discussion of the article, the paper focused on the conclusion that the comparison of the interest rates of long-term bonds and short-term bonds in the bond market in the same period can reflect the overall economic situation of the market to a certain extent, and the significance of this conclusion is that, It can not only enable investors to observe the market trend through the interest rates of bonds of different maturities, and make choices for their next investment decisions, but also enhance the functionality of the financial market and strengthen the connection with the economic market.

Keywords

bond market, finance, interest rate, interest rate risk

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References

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Cite this article

Li,Z. (2023). Research on the Interest Rate Risk Strategy of Bond Market. Advances in Economics, Management and Political Sciences,16,65-70.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

Conference website: https://2023.confbps.org/

ISBN：978-1-915371-75-1(Print) / 978-1-915371-76-8(Online)

Conference date: 26 February 2023

Editor：Javier Cifuentes-Faura, Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.16

ISSN：2754-1169(Print) / 2754-1177(Online)

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