Wednesday, September 28, 2011

Fear Trumps Fed

I thought this was a good article explain why treasury yields have fallen despite the Fed announcing they are going to sell $400 billion worth of short-term debt. An increase in the supply of short-term debt (from the Fed sale) should increase bond supply, lowering prices and increasing yields. But thanks to Europe and Greece this is not the case.

1 comment:

  1. It will be interesting to see where these things head next, but if we are not sure then we better keep the trades level down. I mostly follow experts from OctaFX broker with their daily updates, it’s nice and comfortable for me to be following it while the conditions present here are some of the finest including small spread starting from just 0.1 pips while there is also swap free account option which too is very handy to use for all.