Hey Kno,
Quick question. During risk-on, the increase in yields leads the increase in risky assets because people have to sell their bonds to flow that money into risk. Right? Is the opposite true for risk off? Do we look to the decrease in risky assets first, as people sell those and roll the money back into bonds? Or are we always looking at the bond yields as the leading indicator of money flow?
Quick question. During risk-on, the increase in yields leads the increase in risky assets because people have to sell their bonds to flow that money into risk. Right? Is the opposite true for risk off? Do we look to the decrease in risky assets first, as people sell those and roll the money back into bonds? Or are we always looking at the bond yields as the leading indicator of money flow?