The yield is the effective interest rate that one earns from bonds.  Factors Affecting Bond Yields:

1. Interest Rate Movements: Fluctuations in prevailing interest rates influence bond yields. Rising rates make existing bonds less attractive, causing prices to fall and yields to rise. Conversely, falling rates increase bond prices and lower yields.

2. Credit Risk: Bond yields reflect the issuer's credit risk. Deteriorating creditworthiness may lead to higher yields to compensate for default risk, while improved credit quality may result in lower yields.

3. Market Sentiment: Investor sentiment impacts bond yields. Positive news or optimism may lower yields as investors seek safer investments, whereas negative indicators or uncertainty may raise yields.

4. Inflation Expectations: Yields are influenced by inflation expectations. Expectations of higher inflation may drive up yields to maintain purchasing power, while lower inflation expectations can lead to lower yields.

5. Supply and Demand: Bond market dynamics affect yields. Increased demand or decreased supply can raise bond prices and lower yields, while reduced demand or increased supply may have the opposite effect.