''Even if countries are not trying to link their currencies, bond yields can diverge substantially between countries. For example, if one country’s exchange rate is severely undervalued and is expected to rise substantially against another country’s, then bond yields in the first country will be lower than they would otherwise be in relation to the other country.
Exchange rates can be over- or undervalued, requiring an offset from bond yields, for a number of reasons, such as government action on short-term interest rates.’’
Can someone please explain what this means?