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On August 20, 2019 - the yield on the 10-year US Treasury Note (a government bond)...

On August 20, 2019 - the yield on the 10-year US Treasury Note (a government bond) was 1.56%. As of Thursday, November 14, 2019 the yield had risen to 1.83%. You can conclude from this information that…

Select one:

a. investors were buying the bonds and the price of the 10-year Note went up from Aug 20 to Nov 14.

b. investors were selling the bond and the price of the 10-year Note went down from Aug 20 to Nov 14.

c. you can’t conclude either a or b because there is no relationship between yields and bond prices.

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Answer #1

b). Investors were selling the bond and the price of the 10-year Note down from Aug 20 to Nov 14 because there is a inverse relationship between bond price & yields.

If the Price of Bond increase then the Bond Yield Fall Downward but if the price of Bond Decrease then the Bond Yield Increase or move Upward.

Price Increase ↑ Yield Decrease ↓
Price Decrease ↓ Yield Increase ↑

So According the given equation On August 20, 2019 - the yield on the 10-year US Treasury Note (a government bond) was 1.56%. As of Thursday, November 14, 2019 the yield had risen to 1.83%.

The Investers are selling the Notes from August 20, 2019 to Nov 14, 2019 due to Market interest Factors or some economic Factors or Inflation Factors . That's why the yield increased .27%.

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