SHORT ANSWER
The core idea
Flight to quality describes a shift from riskier assets toward securities perceived as safer or more liquid during periods of uncertainty.
THE MECHANISM
What is happening underneath
In bond markets this often means stronger demand for high-quality government debt and wider spreads on riskier credit.
MARKET INTERPRETATION
How investors should read it
The exact destination depends on currency, market liquidity and the nature of the shock.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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