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Please, answer questions below and write minimum 12 line. US government bond yields rose despite a decline in stock prices on January 2021. In principle,
Please, answer questions below and write minimum 12 line.
US government bond yields rose despite a decline in stock prices on January 2021.
In principle, based on the economic fundamentals, would we expect that US Treasury bond yields move in the same direction as stock prices? Please discuss, in terms of economic activity, what is the implication of declining stock prices for investors as well as the implication of declining bond prices. Should we expect stock and bond prices to move in the same direction? Please elaborate.
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