3 ms·
My understanding (from how the fed does it) is the buying of bonds influences the rest of the lending market since sovereign bonds are the “risk free benchmark”
by refurb 4y ago
My understanding (from how the fed does it) is the buying of bonds influences the rest of the lending market since sovereign bonds are the “risk free benchmark”.
They don’t care about the bonds the Lu are buying, they care about the market price it sets.