Bank interest rate refers to the basic interest rate of bank deposits and loans, which represents the cost of funds and will affect the supply and demand of funds in the market. After the marketization of interest rate, the bank interest rate cannot fully represent the change of market capital demand. Generally, the interest rate in the interbank lending market, that is, the market interest rate, is used to measure the supply and demand of funds.

The tightening of macro-control currency will increase the interest rate of banks, which will increase the attractiveness of risk-free investment. Everyone will think that holding bonds is not cost-effective, so more people will sell bonds, and more sellers will buy fewer bonds, which will lead to a decline in the market price of bonds.

The simple logic is that bank interest rates rise, bond prices fall and bond yields rise. Similarly, bank interest rates fell, bond prices rose and bond yields fell.