-
How Bond Yields Affect Currency Fluctuations in Forex
Every financial market in existence has some impact on every other market. The mere movement of money around the various markets either allows for more investment in a particular market or keep money out of those markets. Either way, they matter, and the same is true for the bond market. A bond is an “IOU” issued by an entity that needs to raise money for some purpose or another. Investors buy those bonds on the promise of being paid back at a later date with interest. The bond yield refers to the percentage that the bondholder is paid for their investment. The bond price is the amount that the bondholder paid to ... (full story)