When the bond yield falls within the term, the bond price will rise as the bond maturity approaches.
Raising interest rates is the behavior of the central bank of a country or region to raise interest rates, which increases the borrowing cost of commercial banks to the central bank, and then forces the market interest rate to increase. The purpose of raising interest rates includes reducing money supply, curbing consumption, curbing inflation, encouraging deposits and slowing down market speculation. Raising interest rates can also be used as an indirect means to increase the value (exchange rate) of domestic or local currencies against other currencies.
Industry influence
Food and beverage industry: the interest rate hike has little impact on the food and beverage industry, because consumption is not sensitive to interest rates, and the asset-liability ratio of leading companies in the industry is very low, which has a slight impact on the beer industry.
Household appliance industry: consumer category, with little impact.
Communication industry: little impact. However, operators will have to go to 5G in the future, and the capital expenditure will be large, which may have some impact.
Pharmaceutical industry: the overall debt ratio of the pharmaceutical industry is not high, and the interest rate hike has little impact on the industry as a whole.
Tourism: the overall impact is not great.
Commercial Retail: China's interest rate hike is mainly to curb investment rather than consumption. Therefore, raising interest rates has little impact on the retail industry.
Agriculture: The asset-liability ratio of major listed companies is not high, which belongs to the industries supported by the state.
Electronic industry: the interest rate hike has little impact, because the industry is more affected by the global business cycle and relatively more affected by the exchange rate.
Aviation industry: The impact of interest rate hike on aviation industry is mainly psychological, with high debt ratio, but domestic airlines mainly borrow foreign debts and are sensitive to foreign interest rates. Passenger load factor, oil price, exchange rate and interest rate are the main factors affecting airline performance, among which passenger load factor has the greatest influence, followed by oil price, and interest rate increase has limited influence on airline performance.
Petrochemical industry: At present, the demand of petrochemical industry is still strong. Compared with raising interest rates, international oil prices have a greater impact. If the oil price remains at a high level, the profits of the petrochemical industry will still be considerable.
Real estate industry: the debt ratio is extremely high, and raising interest rates has a great impact on it.
Generally speaking, the impact of raising interest rates includes:
The stock market is depressed (the stock market is down, but there is also a slight upward trend)
It is possible to alleviate inflation by reducing the speed of money circulation.
People spend less and save more.
Industrial and commercial enterprises reduce investment
Stimulate the appreciation of domestic or local currencies
Slow down the growth rate of domestic or local economy.