Sorry for the stupid question.
I understand bonds and t-bills. But never quite understand how interest rates affect them.
Suppose the interest rate increase from 1% to 2%, how will it affect the treasury yield?
Does it mean new 90 day T-bill will be issued for 2% yield from now on? Or it refers to new 10-year treasury bonds? Or all govt bonds regardless of duration will be issued at 2% yield from now on?
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