2. The relationship between the yield of national debt and exchange rate and precious metals: During the period of quantitative easing, the gold ratio of the yield of national debt was low, which means that the yield increased more than the gold price, and even the gold price fell during this period. However, in order to hedge the devaluation of paper money, gold will still be bought and held by the market, although its increase will lag behind other commodities, such as copper, zinc, tin and other basic metals. Then, in the QEN environment with no upper limit and no time limit, the continuous decline of this ratio means that the yield of government bonds may continue to rise. Although the increase of gold lags behind the increase of the yield of government bonds, the price of gold will remain volatile and rise slowly.
The yield of a country's national debt can be used as one of the indicators to measure the value of its local currency. Let's take US Treasury bonds and US dollars as examples.
US Treasury bonds are mainly two-year, 10-year and 30-year. Among them, the two-year national debt is too speculative, and the 30-year national debt issuance is relatively small. Because of its good liquidity and reasonable duration, 10-year treasury bonds have obvious guiding effect on long-term interest rates, making them the benchmark of mortgage interest rates and credit interest rates, and also the investment target of foreign exchange reserves of central banks around the world.
CBOT, the Chicago Board of Trade, listed US 10-year Treasury futures, and traded all day.