QUICK DEFINITION
Bond Price is the market value of a bond, usually quoted as a percentage of its face value.
WHY IT MATTERS
Why Bond Price matters in bond markets
Bond prices move inversely to yields, making price the immediate expression of changing rate, credit and liquidity expectations.
MARKET CONTEXT
How to think about it
Bond investors use bond price as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Bond Price important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Bond prices move inversely to yields, making price the immediate expression of changing rate, credit and liquidity expectations.