Bond yields are mostly referred to the interest or rate of return paid to the investor. Actually, it is a kind of premium that is paid to investors in return of holding a corporate government for a given period of time. Bond can be categorized as a loan as bondholders are paid just like a interest is paid to lenders of the loan.
Investors give special importance to bond yields as it reflects investor confidence on the bonds. The bond yields rises for attracting more buyers in case of weak demand for bonds. However, low bond yields show that there is a very high demand for bonds as they are confident that they will get good payment on yield date of bond.