I have a vague undertanding of Bonds. I know their yields are a good indicator of investor sentiment and as a result are a powerful tool of reference for traders. However I remain hazy in my understanding of what influences Bond prices and yields, and in turn how Bond prices and yields affect the the Forex market. Are there any experienced traders that can give a good explanation?
Am I right in saying that yields drop and prices rise when risk aversion is high and (safer) Treasuries are in higher demand and vice versa?
Any help would be greatly appreciated.
Am I right in saying that yields drop and prices rise when risk aversion is high and (safer) Treasuries are in higher demand and vice versa?
Any help would be greatly appreciated.
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