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Joined Aug 2010
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Status: Capitalism Prevails
|288 Posts
a bearish sentiment for the dollar? The lower demand is for bonds, then the lower the price but the higher the yield, right? If there is lower demand for bonds, doesn't that mean a lower demand for dollars?
The trend is my friend? The world casino is my friend!
a bearish sentiment for the dollar? The lower demand is for bonds, then the lower the price but the higher the yield, right? If there is lower demand for bonds, doesn't that mean a lower demand for dollars?
Ignored
Ahh but if it is yielding higher surely that means it will be more favourable in interest rate differential because unlike most people think, the carry trade is determined by bond yields not just base rates.
So you could see that as a rise in interest rates which broadly corrleates to a stronger USD.
I'm not saying this to say you're wrong (becuase your not) just that there is more than meets the eye.
