I thought that inflation drove down bond prices in general, but I read in "The Invisible Hands" by Steven Drobny that it is only when inflation rises that government financing becomes a problem for bond markets, as that is when bonds no longer get cheaper as they sell off and nominal yields rise.

  • "as they sell off and nominal yields". Did you forget a word between "and nominal"?
    – RonJohn
    Jul 5 at 1:44

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