For large investors, one of the most interesting and promising ways of investing their funds are 30-year and 10-year US bonds. The first are called long bonds, the second - short. Regardless of what obligations are considered, there is one simple rule for all of them: the total number of bonds demonstrates a reverse-proportional dependence on the price. At the same time, it should be taken into account that at the moment there are no rigidly fixed relations between the US national currency exchange rate and long bonds, but there is some order here. This is what allows us to calculate the relationship between USD and an investment instrument such as US Treasury bonds. If you want to know more about other financial instrument just visit website HQ Broker. The fall in bond prices, that is, an increase in its volume amid inflationary worries, contributes to a strong fall in the rate of the US dollar. Growth is seen as the result of the emergence of strong macroeconomic information. Acting as a reference asset, US government bonds cause the movement of cash flows based on global considerations. As a rule, political or financial instability on the financial markets of the countries of the 3rd world automatically simulates the emergence of a strong and high demand for US debt obligations, because of their ability to serve as an asset to a safe haven. Interrelation of US Treasury Bonds with other instruments It is quite natural that the oscillatory movements in the market of US debt bonds are directly related to the change in the value of assets in all other areas of financial sites. This should be considered in more detail. 1. If investors see a clear increase in interest in acquiring securities of large US companies, which can be clearly seen in the analysis of complex indices, for example, Dow Jones, then the Chicago exchange of bonds will have a downward trend. That is, there is a flow of funds from the Exchange of the Treasury to the stock exchanges where the shares are traded. It turns out that the dynamics of the movement of major stock indexes and the fluctuation of prices for them and US government bonds are in inverse relationship. This should always be considered when implementing your trading system. It turns out, when the indexes in the stock market are growing, then the prices for the debt securities of the United States are falling and their profitability is increasing. As the 200-year history of the prices for these papers shows, the yield of US bonds fluctuated within the range of 2-13 percent, reflecting in turn, the development of the economic crisis in the United States, then, on the contrary, the greatest rate of development of one of the world's leading economies. 2. US Treasury bonds are instruments imitated in the national currency of the United States of America, that is, in dollars (USD). Accordingly, the growth of demand in the bond market causes an increase in the US dollar rate. That is, there is a direct correlation with the EUR/USD currency pair. This tendency is especially noticeable when large foreign investors are buyers of debt bonds. Now China is the largest creditor for the US bonds. China has US treasury bonds for a total of about one trillion dollars. Quotations of 30-year bonds demonstrate a very acute reaction to the publication of macroeconomic statistics, so working with them; special attention should be paid to the publication of important economic news from the United States. It should be borne in mind that good news causes a downward trend on the chart, as investors see no reason why to buy US bonds. Accordingly, with bad news, the opposite picture is observed - the trend demonstrates a confident unidirectional aspiration upwards. Thus, understanding what the US government bonds are, where and how they are traded, you can add to your portfolio another very valuable tool that is easily predictable, which means it can bring a lot of profit points to every trader who understands it! Diversify your investment portfolio with company HQ Broker. Analysts of the Company will explain all the features of work with US Treasuries.