Bonds and the share market
The bond market is watched closely by professional traders in the equity markets. Traders often use the bond market as a predictor of what will happen in the share market. One reason is because it can give indications as to where the economy is going. Predicting the Economy Short term rates are set by central banks. They evaluate different economic indicators before setting this rate. Long term interest rates are determined by the market. The bond market will determine whether …