bond yield and supply/demand


Can someone explain to me the relationship between yields and supply/demand of bonds?

Thank you very much.

Simple answer, as demand for bonds increases, prices increase and yields will decrease due to the inverse relationship between bond prices and yields.

As demand decreases, issuers need to increase yields in order to attract buyers.

Except for new issues? just confused with watht they are saying in reading 24 about the scarcity value. (vol 4 page 97 eoc 4 A)

The bond yield could be affected by supply&demand(traditional finance) .

The bond yield could also decrease when new issues increase. This is explained by some kind of validation(sounds like behavioral finance, but I didn’t see it in the book).

They are two factors which affect the bond yield in opposite directions.