Economics Bonds Questions
Bond yield volatility refers to the fluctuation in the yield or interest rate of a bond over a given period of time. It measures the degree of uncertainty or risk associated with the changes in bond prices and yields. Bond yield volatility is influenced by various factors such as changes in market interest rates, economic conditions, inflation expectations, credit ratings, and market demand for bonds. Higher bond yield volatility indicates greater uncertainty and risk, while lower volatility suggests stability in bond prices and yields.