Please explain this Finance Article Sentence?
The FTSE All World equity index is down 0.3 per cent, however core bond yields are again slowly becoming higher as the long-term impact of the Federal Reserve’s quantitative easing policy stokes inflation fears. ---- I know what quantitative easing is, please just explain the rest in obvious terms! Thank you
Public Comments
- It means that overall stock prices are decreasing. Since stocks and bonds are alternative forms of investment, it is generally the case that if stock prices decrease, bond prices will increase at the same time. An increase in bond prices means a decrease in bond yields. That is generally the case. But this statement says that it is not the case in this situation: bond yields are increasing, not decreasing. That is why the sentence contains the word "however".
