Bond Market Dynamics Understanding, Requirement Type Personal, Type Of Service Provider Individual Consultant, LocationCity Navi Mumbai

Compared to bond market, Equity market is viewed as stable and less volatile. But activities including falling currency makes the market volatile, Depreciation and appreciation of currency against dollar is regarded as the top happening event and a large portion of the time regulator rbi take measure to balance it time to time. And such measures often affects the bond price movement adversely. Certainly the volatility in debt market creates doubts in minds of investors about debt market and its functionality. The underlying structure of debt market is changes in interest rate levels interest rate scenario affects bond prices and so debt funds return. You will find an inverse relationship between interest rate and bond prices. As interest rate moves up, Bond prices come down and vice versa. This stands among the reasons why bond funds delivered negative return recently with unexpected spike in short term rates due to rbi action. So investment in long duration bond funds is recommended when interest rates are likely to fall.