True or False: All bond yields have increased since the 1980s.

The correct answer is that it is false to say all bond yields have increased since the 1980s. While it is true that bond yields saw an upward trend throughout much of the 1980s and into the early 1990s, they have not consistently increased since then. In fact, starting in the mid-1990s and particularly after the financial crisis of 2007-2008, bond yields have generally trended downward, reaching historically low levels in the 2010s and early 2020s.

Understanding the behavior of bond yields over time requires recognizing that various economic factors influence interest rates and bond yields, including monetary policy, inflation rates, and economic growth. For instance, the actions of central banks, such as the Federal Reserve, can significantly impact yields. During times of economic uncertainty or recession, central banks may lower interest rates to stimulate the economy, leading to lower bond yields.

Additionally, the dynamics of supply and demand for bonds also play a crucial role. When investors seek safer investments during periods of uncertainty, the demand for bonds can increase, which may drive down yields. Therefore, given this fluctuating nature of bond yields influenced by multiple factors, it is inaccurate to claim that all bond yields have increased