1. Interest rate is one of the important factors affecting bond prices. When interest rates rise and bond prices fall, there is risk. The longer the remaining maturity of bonds, the greater the interest rate risk.

2. When the interest rate changes, the longer the bond term, the greater the price change, such as raising interest rates: bond prices fall, so the longer the term, the greater the uncertainty and the greater the impact.

3. The face value of the bond itself is also fixed. This decline in interest rates will lead to an increase in bond prices, which will directly affect the yield of these bond investors during their holding period. Therefore, the lower the interest rate, the lower the yield to maturity holding bonds.

4. The main reason is that the interest rate cut is expected to lead to a decrease in the overall market interest rate, which will lead to an increase in the yield of bond investment holding period due to the decrease in interest rate. This is actually a misunderstanding of the principle of bond investment and falling into homeopathic thinking. Because the bond is in a low interest rate environment for a long time, this will lead to a rapid decline in bond prices, but it does not mean that the yield will decline during the bond investment holding period.

5. However, due to the rise of the bond price itself, it will bring some extra differential income. For bond investors, a large number of investors do not hold bonds until maturity.

6. Many times bonds are issued in fixed coupon rate (even floating rate notes, commonly known as floating rate bonds, faces the same problem. If the interest rate is too low and lasts for a long time, that is, the future cash flow of bond investment is predictable and there is no default, and its duration is generally long, the risk of holding bonds is lower. On the contrary, the lower the interest rate, the higher the yield of bond investment will be during the holding period, although these bond investors can charge.