Jeremy Siegel writes in "Stocks for the long run" that when better than expected economic data is released bond prices fall and real interest rates go up.
- Why do bond prices fall with better economic data?
- So in principle can we say that movements of real interest rates and mortgage rates are mainly caused by such bond price movements and not necessarily changes in federal funds rate?
- Better than expected economic results should be a positive signal for stocks. Isn't that in conflict with real interest rates going up?