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Bernanke: Fed may buy Longer-Term Treasuries
Calculated Risk —
From Bloomberg: Bernanke Says Fed May Buy Treasuries to Aid Economy “Although further reductions from the current federal funds rate target of 1 percent are certainly feasible, at this point the scope for using conventional interest-rate policies to support the economy is obviously limited,” Bernanke said in prepared remarks to the Austin Chamber of Commerce. One option is for the Fed to buy “longer-term Treasury or agency securities on the open market in substantial quantities,” Bernanke said. “This approach might influence the yields on these securities, ...
Fed has Option to Buy Treasuries on Open Market
EconomPic —
Bloomberg provides some additional insight into the recent Treasury rally: “Although further reductions from the current federal funds rate target of 1 percent are certainly feasible, at this point the scope for using conventional interest-rate policies to support the economy is obviously limited,” Bernanke said in remarks to the Austin Chamber of Commerce. One option is for the Fed to buy “longer-term Treasury or agency securities on the open market in substantial quantities,” Bernanke said. “This approach might influence the yields on these securities, thus helping to spur aggregate demand.” Treasury prices rose on ...
One Dozen Observations on the Current Market Stress
The Aleph Blog —
1) What a mess. I had been lightening up on equity exposure over the last week, but seemingly not enough. The last three months have been hard for me, with my performance trailing the S&P 500 in each of the last three months. Well, at least I admit it when I lose; let’s see if I can’t do better in the future.
2) The rally in long Treasuries is the cousin to the fall in equities.
A $4 move in the long bond would be significant enough — that is a top 5 move, but the shocker is seeing the 30-year yield near 3.20%. That should lead to lower mortgage yields, refinancing, and perhaps, lower rates in ...
