Andersen, Torben; Bollerslev, Tim; Diebold, Francis X.; … - 2004 - rev
activity and inflation raising bond yields (lowering prices), as in
the simple model sketched in Section 3 below. Empirical … that both positive real
shocks and positive inflation shocks affect bond prices negatively, and moreover, that the absolute … markets generally
predict that good domestic news (e.g., brisk real activity, low inflation) should strengthen the domestic …