* 7. Globalization of capital markets Suppose bond yields in the U.S. Increase, and you are comparing the resulting changes in the U.S. and Japanese bond markets. If bond yields in the U.S. Increase, there will be an increase in the flow of investment funds to in the supply of loanable funds in the Ioanable fund market. As a result, interest rates will Consequently, there will be a decrease for these securities implying related, bond prices will bond yields than before Because Interest rates and bond prices are in both countries