FYI: The inverse relationship between bond prices and interest rates is a central tenet of bond math. As rates rise, new, higher-coupon bonds become more attractive than previously issued lower-coupon bonds. To entice investors to buy those lower-coupon bonds, prices must fall. Eventually, higher bond yields will be good for investors, but the short-term pain hits investors where it hurts: lower investment returns because of the drop in bond price.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=816343
