So We have 3 charts DXY , US10Y & T-NOTE BOND THE LINK BETWEEN 3 CHARTS IS VERY BASIC
Lets Discuss BONDS first
The Bonds are About to Decrease in value Now bonds consist of 3 things
1-Face value (Principal Investment) 2-Maturity ( Pay back time, lets say 5 yrs ) 3-Copoun rate ( Interest on Face value, lets say 7 % )
The interest on coupon will be 7% per year for 5 years At where bond will be Mature.
Now there is a Basic rule of Supply & Demand of Economics if a Bond prices fall the yield will Rise , Which Also means USD will be strengthen
Why This Happens ? Simple , Because Govs is willing to pay High for less Bond value , Meaning An investor can get higher yields By paying less bond prices
This Also may "INDICATES" The direction of economy and investors confidence which Is key for interest Rates
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