Thursday, May 28, 2009

Roller Coaster Bond Market To Continue

Fed to Buy More Treasuries

Bloomberg reports that the Federal Reserve will probably enter the market again to buy more treasury securities to expand its shrinking balance sheet.

Bond prices have been rising on the news. Bond prices began falling when the Fed did not back up their talk of buying long-end securities. It's all about the Fed! The Fed is supposed to keep market stable but they are doing anything but that.

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