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