I’m confused as to why a strong dollar means poor bond auctions, wouldn’t a strong dollar mean high rates which means high demand for U.S debt from foreign investors?
well if dollar is strong then all the central banks will send there bond holding to defend there currency... that increases the liquidity which drives the bond price less and yield higher. so in the auctions they have to pay a higher yield else participants can buy the same bond from the market with better yields.
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Please don't bicker with your guests. Luke is spot on with his assessment. Dollar depreciation until the bubble burst.
Let me say this again, SLOWLY. Some will line up to buy USTs - until they don't.
Luke brought a machine gun to a knife fight.
My God. Where'd they find this host?
We make adjustments 😊
Wear a tie.
I’m confused as to why a strong dollar means poor bond auctions, wouldn’t a strong dollar mean high rates which means high demand for U.S debt from foreign investors?
well if dollar is strong then all the central banks will send there bond holding to defend there currency... that increases the liquidity which drives the bond price less and yield higher. so in the auctions they have to pay a higher yield else participants can buy the same bond from the market with better yields.