Pull to par
Market basicsAlso called: Pull to redemption
The movement of a bond’s price towards the amount that will be repaid, as the repayment date approaches, at an unchanged yield.
In plain terms
It has a sign, and the price tells you which: below face value the drift is upward, above it the drift is downward. So part of the trend on a bond chart is the calendar rather than anybody’s opinion — and it disappears entirely on a perpetual instrument, which has no repayment date to converge on.