Operation Twist
Moderator: Global Moderator
Operation Twist
What would a potential "Operation Twist" by the Bernanke do to SHY or SHV? Are there negative implications for them if it happens? And what about LTT?
Re: Operation Twist
The bond market has probably priced in these concerns already. Just hold on for the ride. There isn't any way to know what will happen.
Re: Operation Twist
There's no way that you or I could know, Craig, but "market experts" are predicting interest rates will rise by the end of the year.craigr wrote: The bond market has probably priced in these concerns already. Just hold on for the ride. There isn't any way to know what will happen.
Re: Operation Twist
Maybe. But they have been saying the same thing for 30 years now and have been wrong!
Re: Operation Twist
I'm starting think Bernanke and friends just mess around with the yield curve to make themselves look busy.
everything comes from somewhere and everything goes somewhere
Re: Operation Twist
I think they should try to reverse the yield curve... LT rates at 0% and ST rates at 3%-4%.
Just to see if it can be done.
Just to see if it can be done.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine