I refer to this article from yahoo news:
The dollar has been under pressure as investors bet that the U.S. Federal Reserve will enact a bond-buying program in early November. Buying bonds would drive interest rates and yields even lower, and tends to encourage dollar-selling.
So why is it that when government initiates bond buying, bond yields will fall lower? (Increase in demand? If so why?)
Did the lower yield from bonds reduce appeal to international investors of carry trades and hence the selling of dollars?
The dollar has been under pressure as investors bet that the U.S. Federal Reserve will enact a bond-buying program in early November. Buying bonds would drive interest rates and yields even lower, and tends to encourage dollar-selling.
So why is it that when government initiates bond buying, bond yields will fall lower? (Increase in demand? If so why?)
Did the lower yield from bonds reduce appeal to international investors of carry trades and hence the selling of dollars?
"Nature's law" is called "Reason". When perfectly understood by human it is