If government bonds in Europe go up/down, what happens to Treasury yields?
What is the relationship between Treasuries and gov't bonds in Europe - say the gilt or bund yields go up, what is the effect on treasury yields?
What is the relationship between Treasuries and gov't bonds in Europe - say the gilt or bund yields go up, what is the effect on treasury yields?
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There may be a case to argue for a positive correlation, but the real answer is "it depends"...
For the case for positive correlation, is it because central banks like to follow one another on the same path and to also not let investors all flock to say, Treasuries?
It's not necessarily about the rates set by central banks...
You could come up with a variety of possible explanations. For instance, you could argue that all global fixed income, regardless of currency, has some sensitivity to a few common factors, such as degree of risk aversion and/or expected inflation.
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