Treasury Yields Fall to Two-Week Low Treasury bond prices rose on Monday, pushing interest rates down. The interest rate on 10-year bonds fell 4 basis points to 1.65%. Source: The Wall Street...

Treasury Yields Fall to Two-Week Low

Treasury bond prices rose on Monday, pushing

interest rates down. The interest rate on 10-year

bonds fell 4 basis points to 1.65%.

Source: The Wall Street Journal , August 27, 2012

What is the relationship between the price of a

Treasury bond and its interest rate? Why does the

interest rate move inversely to price?