ising yields on Chinese government bonds With the lack of demand for Chinese government bonds by the public, China’s benchmark ten-year government bond reached a high yield of 4.72 percent, which is the highest in almost nine years.

Source: The Wall Street Journal, 25 ovember 2013 Think about government bond purchases by the Chinese public:

What happens to the bond price when the demand for bonds decreases?

What happens to the interest rate when the demand for bonds decreases?

When the demand for bonds changes, does the demand for money also change?

What is the relationship between a decrease in the demand for bonds and equilibrium in the money market?