I've always wanted to ask about this, but it comes down to quibbling over language so it never seemed thread-worthy. Still, I can't resist. Everyday I hear journalists and pundits talking about yields, making statements like "yields are rallying today, causing prices to drop." Just now, I heard that reporter on CNBC Rick Santelli, saying something to that effect. "Yields are rising, sending the prices lower." Am I right in thinking this perception is exactly backwards? The ONLY way yields can ever rise is if bond traders sell all the bonds at a certain price point, thus opening the market to the next bid lower. When that happens, the yield is effectively higher because the price went down but the income from the bond is fixed. The bond now yields more than it did before because this fixed income-bearing instrument was cheaper to buy, so it's relative rate of return is now higher. Therefore, rates don't affects prices. It's always the other way around: Buying and selling of bonds affects the price of bonds, which in turn changes the relative yield of the bond. It's the same with stock dividends. No one would ever say "the dividend yield of Walmart went up, causing the price of Walmart stock to go down." I'm just trying to figure out why there is such a pervasive, ubiquitous emphasis on yield as begin causally linked to the price of bonds. Yields never cause prices to fluctuate. Price fluctuations stemming from normal trading activity--and that alone--causes yields to fluctuate.