Sentences with phrase «higher yield differential»

The chart shows that a higher yield differential between U.S. and German government bond yields in the past typically spurred more foreign purchases of U.S. bonds, supporting the dollar.

Not exact matches

With rates at near zero in the United States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which investors borrow at ultra-low rates in currencies such as yen or sterling and buy high - yielding assets such as the kiwi.

The more general forces that have influenced the exchange rate over the past year or so have been the relative strength of the Australian economy, the associated yield differential in favour of Australian dollar assets, and the continued improvement in Australia's terms of trade, which are now at their highest level in more than 25 years.

It has helped put «yield differential» back in the driver seat for global currency moves: this means higher US bond yields could drive the greenback higher.

Having said that, we find validity in WHT differential as a significant driver of performance when investing in high yielding assets.

The basic premise is that large interest rate differentials create ideal conditions for a long - term trend favoring the higher yielding currency over the lower yielding currencies.

The EUR / USD moved lower declining for the 5th consecutive day as U.S. yields continued to trend higher, widening the interest rate differential between the

The EUR / USD moved lower declining for the 5th consecutive day as U.S. yields continued to trend higher, widening the interest rate differential between the U.S. treasury and the German bund.