Forum > View Topic (Analytic)
This thread was started in response to the Analytic:
US EU Bond Yield Spreads
Rather than simply comparing currencies' overnight interest rates, FX traders pay close attention to differentials in 10-year yields for the market's assessment of longer term interest/inflation rate horizons. The relationship is straight forward.
I am very pressed to see perfect negative correlation in the 2 charts. Did you fist post this article on August 20, 2008 ET? Why does the 1st chart ended in May 2009?
How could we compile the US EURO bonds spead curve ? I mean where to get the data source
Thanks a lot and have a good day! lol
Arms
But the more I have learnt, the more difficult to judge whether to trade. I have been trading FX for 3 years, I don't know how long I could be a professional trader?
Ashraf
Found some interesting stuff on YouTube:http://clicks.aweber.com/y/ct/?l=NDy8Z&m=I_GkiJXSxTWeOp&b=FjM5DtBrLOn1KWduGTZB0g
Tips on how-to install Expert Advisor.
Thanks for your tips. Just as what you describe, if eu's bond yield is higher than US', it is good for EU, am I right?
I am very sorry that I just have got a new job as a US stock editor last week and very busy, so that I didn't read your message. What a pity I miss a good opportunity to communicate with you....
@samof
hi, samof. My QQ is 776044530
Why dont you Tune in to my webinar this Sunday MIDNIGHT LONDON TIME which is decent timing for Japan.
http://bit.ly/bup7tZ
Ashraf
I have finished reading yoru book. But I only find the charpterw concerned with the spread of structrure of interest of a country. I want to know how to use the spreads of US EU bond to analys
EU, thanks!
This is not directly related to bond yields but to the market price of bonds (my particular interest is in Eurobund and the related Bobl and Schatz). I can't get a handle on what it is that moves these from day to day and in the longer term. It has to be related to debt and interest rates in some way, and presumably also has a bearing on exchange rates as well, but how it all ties in, I don't quite see.
I presume that since government bonds (in stable countries) are one of the safest investments around, then the money goes there in times of risk aversion. So would I be right in thinking that the price of bonds tends to rise when Equities go down (and when the USD tends to go up, and EUR and GBP tend to go down)?
But I'm sure it's more complicated than that. Judging by the contents list of the book, I can't quite tell whether this question would be covered there. From my general reading around recently, I have picked up the impression that as well as everything else, an understanding of the bond market is quite important if we are to try to understand how the markets all fit together.
With thanks,
Regards,
M.
Ashraf