- Present participle of decouple.
- The act or process by which something is decoupled.
The tendency of U.S. Treasury bonds to rise significantly when the stock market trades lower. Decoupling is caused by investors liquidating stock holdings and putting their funds in the safety of U.S. Treasury bonds. Decoupling makes the purchase of Treasury securities a good way to diversify a portfolio because losses in stocks will typically produce gains in bond prices.