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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Perspective who wrote (103561)5/29/2009 8:04:51 AM
From: Think4Yourself  Read Replies (1) | Respond to of 110194
 
I think it was the Dallas fed chief who said this morning that he had "no idea" what was going on with the Treasury yields.

He's either a liar or incompetent. Either way, not good.



To: Perspective who wrote (103561)5/31/2009 2:12:35 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 110194
 
how do you know that they must print all this money in order to move 10yr yields like that? i don't think the "market cap" of 10yrs is that big.



To: Perspective who wrote (103561)6/1/2009 10:52:47 AM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 110194
 
i reviewed govt debt maturity composition. it seems to be much more skewed toward the long end than it used to. back a few yrs ago there was only like $200 billion of T-bonds; now over $600 billion. on 10yr, i now agree Fed can't simply buy up the entire supply; it's too big.

on the bright side, this indicates the govt is getting smarter--they're selling tons of long-term debt at low rates, instead of just rolling over T-bills.