Volumes have been written about what exactly money is. It is very complicated. Most bankers have no idea what money is or where it comes from, for that matter. I believe you are mixing some things up, like money in a closed system vs an open system (where there are many currencies).
As far as bond prices are concerned, there exists an inverse relationship between prices and interest rates. Bonds are simply a promise to pay a fixed premium per unit. If rates go up you bond becomes worth less. It’s a debt instrument and has little to do with money supply once it has taken life (other than if the money supply forces interest rates up or down, as it is currently doing).
By raising interest rates, the money increases in value. The increase in interest rates forces the price of the house down which is the same thing as saying that the money became worth more.
