Please take a look at the chart below on TLT vs UUP.

TLT is the 20-year treasury bond prices ETF and UUP is the Dollar Index against major foreign currencies.

The relationship is very systematic. There is no doubt that TLT and UUP have an inverse relationship. As yields for 20-yr bonds rise, bond prices fall. This, in turn, supports the dollar and the dollar index rises. The opposite holds true too.

When stock markets fall, yields drop since investors...