Question about Fed buys treasury?

Discussion in 'Financial Futures' started by mizhael, Mar 25, 2009.

  1. If they announce what maturities they are going to buy next, we should be profit from their plan by buying the maturities in front the Fed?

    Am I right?



    Fed bought $7.5 billion in Treasurys in first operation
    By Deborah Levine
    Last update: 11:15 a.m. EDT March 25, 2009
    Comments: 16
    NEW YORK (MarketWatch) - The Federal Reserve Bank of New York bought $7.5 billion in Treasurys on Wednesday. It's the first such operation since the central bank announced last week that it intends to buy $300 billion in Treasury securities to help improve conditions in private credit markets and spur lending. The debt bought Wednesday included notes maturing between 2016 and 2019. Dealers submitted $21.9 billion in debt to be purchased. The Fed said Tuesday its next batch of purchases, of debt maturing in two to three years, will take place on Friday. Other maturities are slated to be bought next week. Ten-year note yields (UST10Y:
    U.S. Treasury 10 Year
  2. Good luck! You and the entire primary dealer community is lining up for a handout from the Fed. I think the dealers are quite a bit ahead of you in the queue, though.
  3. This is really bad man. The fed shouldn't be out publicly telling the market it is going to start monetizing US debt. History has been down this road too many times. It always ends up crushing a nation's currency which causes the target country citizens to suffer higher inflation rates with nothing to show for it. A weak dollar recovery will not fix our situation one bit.
  4. You are kinda late on this one :)
  5. You do understand that we've given back over 1/2 the gains from the FOMC announcement right?

    The Fed is the bag holder.

    All you can do is tickphuk it and be sure to use stops.