My question is how do bonds react to changes in the Federal Funds Rate? Specifically, government bonds, because I don't see corporate bonds being affected as drastically. I've done research, but for some reason it's not clicking with me.
I'm planning on starting my Roth IRA account, and probably will do 95% equities for now since I'm 23..but. but I still think I should consider buying some bonds. Since the FFR is so low, and I sense the FEDFed will raise their target sometime soon, I'm deciding whether I should hold off on buying bonds for now, or if now is a good time. Thanks!