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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (24216)12/24/2013 12:18:50 PM
From: ahhahaRead Replies (1) | Respond to of 24758
 
So what happens if foreign selling of the Tbond causes its yield to rise above 4%? FED must expand, not contract, Permanent purchases. Once the economy of the low cost producer at scale causes its CB to embark on the gasoline on the fire strategy, the rest of the world's main CBs must follow suit or their money rates, or long term bonds, will rise in yield. This is how gold rises in a rising interest rate environment.