What is the relationship between the US dollar and US Treasuries?

The repurchase of treasury bonds is to increase the liquidity of the market and increase the currency. Originally, government bonds were issued to reduce liquidity in the market. Of course, the main purpose of government bonds is not to regulate liquidity. That is, there are fewer dollars circulating in the market, and from this point of view, the dollar index will rise.

Treasury bonds are issued to cover fiscal deficits, and government bonds are repurchased to increase liquidity. The reason for the announcement of a slowdown in the $300 billion Treasury bond purchase program is that recent economic data in the United States shows that the recent economic recovery in the United States is good and that more liquidity is not needed to cause inflation for the time being.

Risk appetite is how risk-averse an investor is. The above sentence should be stated as follows, investors are more inclined to increase their investment in risky assets and reduce their weighting in risk-free return assets. That's why the U.S. Dollar Index** is here.

If the Fed slows down its purchases, the dollar injected into the market will not increase in the short term, and the dollar should appreciate. <>

A: US dollars