A Collection of Articles, Opinions, and Research on the Economy.
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.