Explanation:

Debtors gain from inflation because they repay creditors with amount that are worth less in terms of purchasing power. For debtors, "real" interest rate goes down with inflation. Thus it benefits them. On the other hand, with inflation the yield of bonds goes down, thus a negative effect for bond-holders. A rise in either interest rates or the inflation rate will tend to cause bond prices to drop. Inflation and interest rates behave similarly to bond yields, moving in the opposite direction from bond prices.