How will weakening US bonds effect the USD?

[elisab]

Rates are resisting at the moment, but the dollar is falling…just hope it is not going to be a problem of trust.

 

[elisab]

One of the reasons why the U.S. wants to devalue, is that the export is completely stopped (y / y = ZERO%).

 

[elisab]

And what happens then if the Fed will show that anything will be done until the nomination of the successor to Bernanke?

 

[elisab]

Tonight we might have some certain answers to this thread question.

 

[achilles28]

lower bond price > higher yield > stronger dollar

higher bond price > lower yield > weaker dollar.

 

[elisab]

The answer of the markets…end of the QE = bond down, dollar up.

 

[clacy]

Quote from elisab:

The answer of the markets…end of the QE = bond down, dollar up.

Gold and real assets- DOWN
Stocks- DOWN
Bonds- DOWN

I hope we're not in for a period where everything gets killed except the dollar.

 

[Voodoo-king]

How will weakening US bonds effect the USD?

Phase one: US bonds down, USD up

Phase two: US Bonds down fast, USD down faster

 

[Voodoo-king]

Quote from clacy:

Gold and real assets- DOWN
Stocks- DOWN
Bonds- DOWN

I hope we're not in for a period where everything gets killed except the dollar.

Some of this is just the mirror image of both stocks and bonds going up from mid march until beginning may, although gold went down that period, so its about paying back what was borrowed from the future.

 

[clacy]

Quote from Voodoo-king:

Some of this is just the mirror image of both stocks and bonds going up from mid march until beginning may, although gold went down that period, so its about paying back what was borrowed from the future.

Correct. In fact stocks and treasuries have both been rising since 2009 for the most part.