Rate Reverberations

us bondsAs Japan and Europe sink further into negative interest rate territory, the impacts here are undeniable. In an effort to earn positive returns, European and Japanese investors sell their currencies to purchase ours pushing up our dollar, hurting exports, weakening inflation and boosting imports. Then, with our currency in hand foreigners buy better yielding US bonds driving up US bond prices and lowering rates. The world is increasingly interconnected.

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