********* It makes more since if the above says bond issuers not bondholders.
I would say bondholders NEVER like rising interest rates since their asset value is being reduced AND they do not get any advantage from the higher rates - they already lent their money at the earlier, lower rate. -steve grube
<quoted> "But why is the bond market is always said to "rally" when interest rates go down, and said to take a hit when they go up?"
********* The bond market is "rallying" because it is instantaneously marking-to-market whatever the coupon [yield] was when it was issued.
In other words buyers are buying the current, relatively high yield as quickly as they can when they sniff higher rates, but in the process it is changing that yield to a lower one since market action means buyers are pushing bond prices higher (and the yield from a moment ago is now lower because it is calculated against a larger price, the denominator).
-steve grube