The Fed's "Operation Twist" of 1961 is back in style and every banker that's cool is doing the dance. The "Twist" is the Fed's way of further manipulating the interest market by selling short term Treasuries and using those funds to purchase longer dated maturities like the 30-YR Bond. The idea is to force longer term interest rates down about 30-basis points...for just $400 billion. Although the Fed says there really is no risk to this and it is not printing money because it is selling short term Treasuries to fund the purchases; won’t the EXIT of the long term positions be - well - risky?
A good synopsis of the idea is in this video.
A good synopsis of the idea is in this video.
http://finance.yahoo.com/blogs/daily-ticker/very-unusual-fed-action-fails-boost-animal-spirits-201210173.html;_ylt=At_OWe6lHKbGyzKPxE0Fx9i7YWsA;_ylu=X3oDMTFjajNocWx2BHBvcwMzBHNlYwNGUERhaWx5VGlja2VyQmxvZwRzbGsDd
In "other news" the US Gov. is about to shut down again: the House failed to pass a Continuing Resolution Bill this evening, which should make for a lot of fun very soon.
Trade Date: 9/21/11
E-Mini S&P Trades*
(before fees and commissions):
E-Mini S&P Trades*
(before fees and commissions):
1. No "Secrets" trades were filled today.
2. Algorithm positions (17)
3. "Reading the Tape" positions (7) ...combined Secret's, Algo, & "Reading the Tape" total...+15.75
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