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Is it possible to short sell a bond?

Because bonds, like any other security, experience market fluctuations, it is possible to short sell a bond. Short selling is a way to profit from a declining security (such as a stock or a bond) by selling it without owning it. Investors expecting a bear market will often enter a short position by selling a borrowed security at the current market price in the hope of buying it back at a lower price (at which time he or she would return it to the original owner).Short sellers in the stock market are usually concerned with their expectations of a company's future earnings (the main factor determining stock price), whereas short sellers of bonds are most concerned with future bond yields, the determining factor of bond prices.

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