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Thursday, September 8, 2011

A 50-Year Bond? What the Fed's 'Twist' Could Look Like - CNBC

A 50-Year Bond? What the Fed's 'Twist' Could Look Like - CNBC
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  1. RAYLOKESeptember 8, 2011 at 11:00 AM

    A BONDED FUTURE, ...Under Caron's Torque scenario, the Fed would sell all its debt less than two years from maturity and buy in the 25- to 30-year sector, which is longer than the consensus opinion of seven to 10 years. He thinks the benefits will come in "lower credit rates, lower borrowing costs, lower mortgage rates" and other areas.



    The biggest obstacle for the Fed to convince the market that Torque or Twist will work is making the case that interest rates are the primary barrier to spending and economic growth.

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