1. A rising yield curve can be explained by liquidity preference theory. 2. A similar calculation for rising yields would show an appropriate fall in price. 3. Although rising yields are bad news for banks, an economic rebound bodes well for retailers -- many of whom get almost half their profits this time of year. 4. And rising yields are encouraging some fund managers to look to Canada, the U.K. and Australia to boost their fixed-income performance. 5. As bond prices fall, the rising yield makes them more competitive with stocks. 6. A favorable price outlook has allowed the German debt market to defy forecasts of rising yields for most of the year. 7. By this argument, the rising yields on longer-term issues simply presage a move toward higher interest rates as the economy picks up steam again. 8. Concerns that rising yields on U.S. Treasuries might siphon off some buyers also weighed on prices. 9. Declines will be limited because rising yields could entice investors to buy bonds as prices fall, traders said. |