Aguytrying wrote:One thing I dont get. If there's strong demand for bonds, shouldn't interest rates go down?
The CBR rate acts as a reference point. It is a risk free rate that assumes no default risk. To issue a bond sucessfully a premium will have to be added to ensure success. That creates differentials in rates quoted.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.