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Fed Says to Buy Long-Term US Government Debt

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March 18, 2009 – Comments (2)

Wow, I can't believe that the Fed actually decided to do it.  I have been blogging a ton lately about whether the Federal Reserve would begin to start buying Treasuries.  In the FOMC statement that was just published a few minutes ago the Fed said that it will purchase $300 billion worth of longer-term U.S. Treasuries over the next six months and it will expand purchases of mortgage-related debt.

Very interesting.  The fed certainly wants to get interest rates as low as possible.  It will be absolutely fascinating to watch what happens to mortgage rates over the next several months.

Here's what I wrote on the subject two days ago: Will the Fed start to buy Treasuries?.  I am sure that I will write a ton more on the subject when more details of the plan emerge.

Fed Says to Buy Long-Term US Government Debt 

Deej

2 Comments – Post Your Own

#1) On March 18, 2009 at 3:09 PM, TMFDeej (99.43) wrote:

10-Year Treasuries immediately plummeted after then announcement.

Deej

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#2) On March 18, 2009 at 6:41 PM, jesusfreakinco (28.77) wrote:

Prediction... 10 year bond will retrace this in a sell off over the next couple of weeks on fear of inflation.  Inflation trade is back.  PIMCO and Buffet even said so recenltly.

China ain't gonna be happy with their 3.6% loss in USD value today...

JFC

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