My Understanding is that if a demand for a bond is goes up, people convert to local currency to buy the bond. So price of the currency goes up as well.
But how exactly do we measure that the demand for a bond is going up, because a bond yield's and bond's price are inversely co-related.
Does the increase in bond's price indicate an increase in a bond's demand
(or)
Does the increase in a bond's yield indicate an increase in bond's demand?
If my understanding is wrong, please feel free to correct me...
Thanks
But how exactly do we measure that the demand for a bond is going up, because a bond yield's and bond's price are inversely co-related.
Does the increase in bond's price indicate an increase in a bond's demand
(or)
Does the increase in a bond's yield indicate an increase in bond's demand?
If my understanding is wrong, please feel free to correct me...
Thanks