Wednesday, October 27, 2010
Bond Investors Fight The Fed
There has been a recent increase in bond selling. Experts believe that we should wait before selling the bonds because the Fed will likely buy them to keep rates low. However, several reports indicate that the Fed may not purchase as many bonds as we expect them to. This, in turn, could lead to a fall in long term rates and a rise in the purchase of long-term Treasury bonds.
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I remember coming across an article a couple weeks ago (I'll try to find it) in which it discussed how The Feds proposed bond purchases would essentially be a waste of money and do minimal to help the economy recover.
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