arigolden

US10y Yield vs. Dollar Index (DXY) - a Mean Reversion coming?

TVC:US10Y   US Government Bonds 10 YR Yield
285 1 9
Most textbooks will tell you that a higher yield attracts capital inflows and therefore demand for that currency increases and in turn, increases the value of that currency.

This chart shows exactly the opposite happening with the US10y             yield and the US dollar             going in opposite directions. Some can argue that this is the intention of the Trump administration to have a weaker or more 'competitive' US dollar             .

This diversion will have to eventually revert such that the two move in tandem - but which one will lead? Will the dollar have to strengthen to catch up to higher yields or will higher yields have to pull back to fall in line with the dollar?

I suspect it will be the dollar playing catch up...
No... 40 years of Dollar/US gov confidence is gone. Hence the breakdown. Default/deval/ QE4 coming..
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out