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 differences in Bond prices and yields affect forex; 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, putting (safer) Treasuries 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, putting (safer) Treasuries in higher demand and vice versa?
Any help would be greatly appreciated