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Post by novie08 on Dec 18, 2015 11:32:10 GMT -5
Yellen is going to raise interest rates without significant open market bond sales? This has never been attempted. I didn't look at anything for almost a week so would appreciate some conversation on this. TYA.
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Post by huh on Dec 18, 2015 11:50:16 GMT -5
Unfortunately I'm too stoopid in these things to hold up my end of any conversation on this stuff.
This much I believe - the Fed will "normalize" markets by continuing to slowly raise interest rates next year, even if the market is in free fall (remember, the market and the economy are two separate things - market can fall even if Fed numbers show the economy "healing", or "stable"). I think this was the plan all along and may be a nice pairing play to insure domestic buyers fill in the bond buying gap where foreign bond buyers have already stepped away.
JMHO
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Post by novie08 on Dec 18, 2015 12:48:01 GMT -5
Thanks. My understanding of bonds is limited although the market is much, much larger than equity markets. I read that somewhere and will try to clarify if I have time. Have been running behind every since oral surgery on Nov. 4th! LOL.
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Post by huh on Dec 18, 2015 13:12:59 GMT -5
Thanks. My understanding of bonds is limited although the market is much, much larger than equity markets. I read that somewhere and will try to clarify if I have time. Have been running behind every since oral surgery on Nov. 4th! LOL. You are right, the bond market is much bigger. learnbonds.com/93027/how-big-is-the-bond-market/ |
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Post by walnut on Dec 18, 2015 13:27:28 GMT -5
Yellen is going to raise interest rates without significant open market bond sales? This has never been attempted. I didn't look at anything for almost a week so would appreciate some conversation on this. TYA. I've been wondering how much open market activities they have been using this year. I don't have the answer though. I guess it is just that small discount rate adjustment for the large banks, and that is all. Really only symbolically significant. |
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Post by Herceg on Dec 21, 2015 8:22:49 GMT -5
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