Hi conks, I know I'm late to this thread but I'm struggling to understand how this would not be yield curve control? wouldn't this qualify as YCC if it led to the suppression of yields or am I mixing this up?
I’m referring to the treasury buy back. If they are targeting illiquid parts of the market to reduce interest payments on the long end for example, wouldn’t that fall under the definition?
Love the idea on the TQE- however, I take a slightly different tack - money does not need to come out of RRP - in fact, can come from anywhere to buy the new debt. The question is, how much net VAR did Treasury add to the market on a net basis. Buying a 20yr security, and financing that purchase with overnight TBills will provide the market with the VAR associated with a 20yr UST - that can redeployed in something like 20yr corporate bonds, or a smaller face amount of US equities.
the graph placement in the article might have been deceiving but Treasury QE is not just RRP-related but any mechanism that could be deemed stimulative
I love the detail you present, even if I do not share your faith in capitalism's Rube Goldberg hide-the-pea schemes. Ground truths are dispelling this mad magic even as we invent new yoga poses.
Is this processing same for ust strips as well? Where and how the difference is seen for ust strips from its issuance till settlement w.r.t treasury bonds or notes.. please suggest..
Finally an indepth, and we'll done description of how we are seeing tech hit highs after March's bank failures. Aka bank failures are bullish.
Hi conks, I know I'm late to this thread but I'm struggling to understand how this would not be yield curve control? wouldn't this qualify as YCC if it led to the suppression of yields or am I mixing this up?
what are you referring to?
the technical definition of YCC is targeting and managing a specific and broadcasted level
I’m referring to the treasury buy back. If they are targeting illiquid parts of the market to reduce interest payments on the long end for example, wouldn’t that fall under the definition?
i wouldn’t class that as yield curve control
Love the idea on the TQE- however, I take a slightly different tack - money does not need to come out of RRP - in fact, can come from anywhere to buy the new debt. The question is, how much net VAR did Treasury add to the market on a net basis. Buying a 20yr security, and financing that purchase with overnight TBills will provide the market with the VAR associated with a 20yr UST - that can redeployed in something like 20yr corporate bonds, or a smaller face amount of US equities.
the graph placement in the article might have been deceiving but Treasury QE is not just RRP-related but any mechanism that could be deemed stimulative
I love the detail you present, even if I do not share your faith in capitalism's Rube Goldberg hide-the-pea schemes. Ground truths are dispelling this mad magic even as we invent new yoga poses.
Thanks.
Is this processing same for ust strips as well? Where and how the difference is seen for ust strips from its issuance till settlement w.r.t treasury bonds or notes.. please suggest..