S******n
发帖数: 617 | 1 Total Par Amt Accepted (mlns) : $6,007
Total Par Amt Submitted (mlns): $22,857
The Federal Reserve Bank of New York bought $6.007 billion in Treasurys
maturing between 2012 and 2013 on Tuesday.
But long ends barely flinched (TNX is UP). If his purchase can on longer
drive it down, Ben will shit bricks soon. What's next? Interest rate control?
Get back to the old trick: crash the equity market.
Daddy is watching... o)< | s**********n
发帖数: 868 | 2 I don't quite understand.
If people are selling treasuries in large amounts that overwhelms Ben's
buying, it means people find better place to put their money: make loans,
buy equities, etc... Why is that so bad? If they are just going to put their
money under bed, why would they sell the treasury?
control?
【在 S******n 的大作中提到】
: Total Par Amt Accepted (mlns) : $6,007
: Total Par Amt Submitted (mlns): $22,857
: The Federal Reserve Bank of New York bought $6.007 billion in Treasurys
: maturing between 2012 and 2013 on Tuesday.
: But long ends barely flinched (TNX is UP). If his purchase can on longer
: drive it down, Ben will shit bricks soon. What's next? Interest rate control?
: Get back to the old trick: crash the equity market.
: Daddy is watching... o)<
| S******n
发帖数: 617 | 3 good point.
I guess the healthy funding of the Federal GOV is #1 important on the list.
Based on the huge T amount, the GOV will have big headache to serve the debt
(pay interests) if yields are out of control.
Indeed Fed can "print" to buy more Ts. But once Fed buys, more will
sell to Fed on the artificially high prices that Ben offers.
So the prices down yields up again. Then Ben buys again? hoho
Down this rabbit hole Fed will own most or all of floating Ts. This
cuts off the EXTERNAL funding
【在 s**********n 的大作中提到】
: I don't quite understand.
: If people are selling treasuries in large amounts that overwhelms Ben's
: buying, it means people find better place to put their money: make loans,
: buy equities, etc... Why is that so bad? If they are just going to put their
: money under bed, why would they sell the treasury?
:
: control?
| L****a
发帖数: 572 | 4 Sell dollar and buy foreign assets.
their
【在 s**********n 的大作中提到】
: I don't quite understand.
: If people are selling treasuries in large amounts that overwhelms Ben's
: buying, it means people find better place to put their money: make loans,
: buy equities, etc... Why is that so bad? If they are just going to put their
: money under bed, why would they sell the treasury?
:
: control?
| h*******y
发帖数: 864 | 5 That's what I am wondering about as well. If Ben is so occupied with the
treasury yield, whatever the outcome, who is going to help the dollar when
the treasury yields are kept low?
It seems that foreign assets (including equity) will be hot again after a
terrible year in 2008.
【在 L****a 的大作中提到】
: Sell dollar and buy foreign assets.
:
: their
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