Answer to Question #317492 in Macroeconomics for APOORV

Question

What is the relationship of the US dollar to bond yields? Do they move in opposite direction since treasury bonds and US dollar are directly related?

Answer 1

U.S. bond yields gauge the performance of the U.S. stock market, therefore reflecting the demand for the U.S. dollar.

yes they move to different directions. The lower the price of a bond, the higher its yield. A rising yield favors dollar bulls. Falling bond yields make for a softer dollars