In "The Ascent of Money: A Financial History of the World," Niall Ferguson discusses the intricate relationship between bond prices and interest rates. He explains that when bond prices decline, it leads to a sharp increase in interest rates, which can create significant challenges for borrowers. This dynamic emphasizes the interconnectedness of financial markets and the impact that changes in bond valuations can have on borrowing costs.

Ferguson's insight highlights how fluctuations in the bond market can affect individuals and businesses alike. As interest rates climb due to falling bond prices, borrowers face heightened financial burdens, potentially leading to increased loan payments and greater economic strain. Understanding this relationship is crucial for anyone navigating the complexities of finance and investing.