Financial Markets

iVillage Member
Registered: 02-15-2007
Financial Markets
14
Sun, 08-22-2010 - 1:56pm

Pages

iVillage Member
Registered: 08-14-2010
In reply to: tom_j_g
Sun, 08-22-2010 - 9:09pm

Sounds about right for an entry level finance class, but that's where the accuracy ends. Real life soundly rejects

iVillage Member
Registered: 02-15-2007
In reply to: tom_j_g
Mon, 08-23-2010 - 11:33am

iVillage Member
Registered: 08-14-2010
In reply to: tom_j_g
Mon, 08-23-2010 - 3:26pm

"Basically the prices of Treasuries are determined by Supply and Demand and Demand is in part determined by investor’s expectations as to the future.

iVillage Member
Registered: 02-15-2007
In reply to: tom_j_g
Mon, 08-23-2010 - 5:47pm

iVillage Member
Registered: 02-15-2007
In reply to: tom_j_g
Mon, 08-23-2010 - 6:46pm

iVillage Member
Registered: 08-14-2010
In reply to: tom_j_g
Mon, 08-23-2010 - 7:57pm

"So, yields could be controlled by the Fed (the government) if the Fed targeted Treasury yields, but the Fed does not target Treasury yields it targets the Federal Funds rate."


The article clearly stated the Fed is setting the yield. They have a target yield and will buy up whatever treauries they need to artificially push the yield to that point. The Fed has already stated that is their policy and their intention and that they intend to continue with that policy. Supply and demand have nothing to do with bond yields, which has been pointed out to you more than once.


iVillage Member
Registered: 08-14-2010
In reply to: tom_j_g
Mon, 08-23-2010 - 8:26pm

"Total Recall, are you saying that if I was to buy a 30 year Treasury with a 4% yield that I would really be earning a 10% yield (4 + 6)?

iVillage Member
Registered: 02-15-2007
In reply to: tom_j_g
Mon, 08-23-2010 - 9:08pm

iVillage Member
Registered: 08-14-2010
In reply to: tom_j_g
Mon, 08-23-2010 - 9:42pm

The correct answer is buying at a 4% yield will yield 4% at a risk profile

iVillage Member
Registered: 02-15-2007
In reply to: tom_j_g
Tue, 08-24-2010 - 8:22am

Pages