What happens to exisitng treasury bond prices when the government decides to issue new treasury bonds? | Bonds

What happens to exisitng treasury bond prices when the government decides to issue new treasury bonds?

April 29th, 2008 | by bonds |

Jeff D asked:

What happens to exisitng bond prices when the government decides to issue new treasury bonds?

NICHOLAS

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One Response to “What happens to exisitng treasury bond prices when the government decides to issue new treasury bonds?”
By paul on Apr 30, 2008 | Reply

WESTON

The interest rates do not change after a bond is issued. If you intend to sell a bond before it matures the selling price can change if the interest rate on new bonds is higher or lower than the old bonds. As an example if the new bonds interest rate is lower the value of the old bonds will go up.