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To explore the origin of blue-shifting H-bonds, Li and Schlegel [68] studied many blue-shifting H-bonded systems and found that the absence of orbital interactions cause bond elongation, the repulsive interaction between two fragments results in the compression of X-H and a relative blue-shift of the vibration frequency.
It could also cause bond prices to fall, creating losses, at least on paper.
The cause: bond yields have fallen a lot more than the mortgage rates banks are charging borrowers.
Nor does it matter whether or not you believe the evidence that the euro-area economy is recovering (something that would normally cause bond yields to rise).
An early abandonment of the approach could cause bond yields to rise sharply, unless there is an unexpectedly dramatic improvement in the fiscal position.
With interest rates near zero, the expectation is that the Fed will buy long-term bonds, which would cause bond prices to rise and rates to fall.
Similar(43)
This causes bond prices to rise, lowering yields and making them less attractive as investments.
Instead, 10-year Treasury notes went from yielding near 4 percent in January to less than 2 percent in September, causing bond values to rise.
However, the prospect of an end to QE in the US has also caused bond yields in all major markets to rise, pushing up borrowing costs – including for many governments.
Mr Draghi had argued it was vital to eliminate the "reversibility risk" that had caused bond yields to soar in southern Europe on fears that the euro area might break up.
As falling confidence causes bond prices to fall, interest rates become exorbitant and destroy equity valuations.
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