5 ms·
The Fed will buy the notes, as they have been doing for a while :)
by Flipparachi 17y ago
The Fed will buy the notes, as they have been doing for a while :)
- EinhornIsFinkle 17y agoYa think? Seems like they'll need to keep printing money further devaluing the dollar and/or raise rates to get foreign buyers interested. I think there has been a lot of attention as of late on the strength (weakness) of the dollar & wouldn't be surprised to see rates tick up after next FOMC meeting.
- ctbarna 17y agoWhat we should really be doing is getting the financial firms to buy them like they used to but the yield is much too low. In January 2000, for example, the 5 year yield was around 6.5% (http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield_historical_2000.shtml http://www.ustreas.gov/offices/domestic-finance/debt-managem...). The rates have been cut and the yield is a little over a third of that. No wonder nobody wants them.