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Politics : Ask Michael Burke

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To: Mike M2 who wrote (59127)5/12/1999 12:08:00 PM
From: valueminded  Read Replies (1) of 132070
 
William

You seem to have a handle on this. So questions: Why does the coupon pass improve the bond market (ie is it simply the fed buying tbills which increases demand) If so, why doesnt it interfere with the rest of the bond market ? i mean why stop there. Finally, where do the funds come from which it uses to buy the bonds with? I wouldnt think it has unlimited funds to do this with but maybe it does. thanks
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