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Operation Twist

Posted: Fri Sep 16, 2011 12:09 am
by Reub
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

Posted: Fri Sep 16, 2011 12:16 am
by craigr
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

Posted: Sat Sep 17, 2011 8:28 am
by TripleB
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.
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.  ::)

Re: Operation Twist

Posted: Sat Sep 17, 2011 11:01 am
by craigr
Maybe. But they have been saying the same thing for 30 years now and have been wrong!

Re: Operation Twist

Posted: Sat Sep 17, 2011 1:36 pm
by melveyr
I'm starting think Bernanke and friends just mess around with the yield curve to make themselves look busy.

Re: Operation Twist

Posted: Sat Sep 17, 2011 4:33 pm
by moda0306
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.