Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Oldeconomybuyer

No. The Fed just started buying bonds in the open market. The result was to drive prices up, and yields down, to levels not seen in decades.

Their intent was to lower interest rates on longer term bonds, and that’s what happened. It had nothing to do with the government not being able to sell the bonds.

However, if they try to unload them too fast, they will drive bond prices down, and interest rates up. I suspect bond prices have seen their highs and will be much lower in a couple of years because they’re only high because the Fed has bought so many over the past eight years, and now that’s apparently ended.


15 posted on 04/05/2017 5:11:08 PM PDT by Norseman (Defund the Left....completely!)
[ Post Reply | Private Reply | To 9 | View Replies ]


To: Norseman

Interesting, thanks.


16 posted on 04/05/2017 5:42:55 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
[ Post Reply | Private Reply | To 15 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson