Financial Times’ Post

This is why we prefer alternative investment fixed income products. The rates don’t vary, there is a defined exit, and they are not correlated to the markets.

Bank interest rates are, in many ways, similar to bond yields. Policy rates, as the name suggests, are policy indicators. Bank lending rates, however, price risk according to maturity and time horizon. Bond markets have a much broader perspective. They price expectations and concerns about the future. That is why bond yields are among the most important indicators of how markets view the future of the economy.