Author Topic: Fed puts $18 trillion U.S. government bond market under lockdown  (Read 303 times)

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Online catfish1957

  • Laken Riley.... Say her Name. And to every past and future democrat voter- Her blood is on your hands too!!!
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https://www.marketwatch.com/story/fed-puts-18-trillion-us-government-bond-market-under-lockdown-2020-07-28?mod=mw_latestnews

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Treasury volatility fell to a record low last Friday....

Even for a market known to fall asleep over the summer, trading in Treasurys has gone quiet as the Federal Reserve asserts its intent to keep interest rates at zero for a long time.

The potential for interest rates to move anytime soon looks increasingly diminished as analysts warn it may take several years for economic activity to mount a full recovery to pre-coronavirus levels. That has discouraged speculation in the world’s biggest bond market, with more traders complaining that the chance to make profits on swings in government bond yields have waned.

“With Treasury yields at or near record lows, there is less incentive to be involved in the market, and rates will likely remain trapped at low levels for some time,” said John Canavan, an analyst at Oxford Economics.
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As i have recently mentioned in a different thread, Near zero interest rates are a symptom, not a cure of the health of our economy.  The level of interest in our Treasuries is a prime example of the international community closely watching how our government peforms on a fiscal basis.  This article is just the start of what should be troubling to every American. Our debt, and ultimately currency which was once considered the Rock of Gibralter of stability and safety is rapidly taking the path of the Weimar Republic.
I display the Confederate Battle Flag in honor of my great great great grandfathers who spilled blood at Wilson's Creek and Shiloh.  5 others served in the WBTS with honor too.

Online catfish1957

  • Laken Riley.... Say her Name. And to every past and future democrat voter- Her blood is on your hands too!!!
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Re: Fed puts $18 trillion U.S. government bond market under lockdown
« Reply #1 on: July 29, 2020, 03:11:58 pm »
Flight to safety continues.  New Gold highs daily.  At this exact moment $1,953/ oz.
I display the Confederate Battle Flag in honor of my great great great grandfathers who spilled blood at Wilson's Creek and Shiloh.  5 others served in the WBTS with honor too.