THE IMPACT OF INTEREST RATE CHANGES ON ATTRACTING INVESTMENT TO THE BOND MARKET

Nasridinov Husen Jorakulovich

Authors

Nasridinov Husen Jorakulovich Master Student of "Higher School of Business and Entrepreneurship" Under the Cabinet of Ministers of the Republic of Uzbekistan

Keywords:

Interest rates, bond market, investment, bond prices, bond yields, investor behavior, market trends, government bonds, corporate bonds, monetary policy, capital flows, economic cycles, market sentiment.

Abstract

This research explores the impact of interest rate changes on attracting investment to the bond market. Bond markets play a crucial role in the global economy, and interest rate fluctuations significantly influence investor behavior and the attractiveness of bonds. The study examines how rising or falling interest rates affect bond prices, yields, and investor sentiment. It also analyzes the relationship between interest rates and investment flows into various types of bonds, such as government, corporate, and municipal bonds. By investigating historical data, market trends, and case studies, this paper highlights the inverse relationship between interest rates and bond prices, the sensitivity of different bond types to interest rate changes, and shifts in investor preferences. The research provides insights for both investors and policymakers, offering recommendations for navigating interest rate fluctuations and maintaining a stable investment environment in the bond market.