Correlation between market price US stocks and market price treasury bonds. Sometimes prices move in same direction. Why? Sometimes opposite. Why?

Econ 311 - Money & Banking

Essay 1

Please discuss the correlations betweenthe market prices of U.S. stocks (equities) and the market prices of U.S. Treasury bonds.

Sometimes, stock prices and Treasury bond prices move in the same direction. Why?

Sometimes they move in opposite directions… why would that be?

This essay is due on Friday September 28th either in your discussion section or in your TA’s mailbox if your discussion meets on Mondays.

Please submit a hard copy of the essay to your TA that is approximately 750 words in length and double-spaced.

Thanks!