How do you xxplain how The bond Market will react if interest rates lower?

When interest rates lower, existing bonds with higher interest payments become more attractive, leading to an increase in their market prices. Investors may shift their capital into bonds, driving demand up and pushing prices higher. Conversely, newly issued bonds will offer lower yields, making existing bonds more valuable. This dynamic often results in a rally in the bond market as investors seek to capitalize on the higher fixed returns from existing bonds.