My understanding is if bond yields increase it creates demand for a currency. But that means bonds are being sold if yields are increasing? So if bonds are being sold and not bought, thus not creating demand for a currency, why do currencies have a positive correlation with bond yields?
Can you see why I’m struggling? Sorry if stupid question.
In: 6
currency goes up cause if bonds yields are higher as an investor i have to sell my yen/euro to buy more dollars to buy those better bonds which makes the dollar go higher.
Latest Answers