The Fed is fucking up the Yield Curve

Has anyone seen it lately? Seriously.

 

its obvious that everything is below the fed funds rate.

inverted yield curve... we may see one of those hard rebounds

http://www.bloomberg.com/markets/rates/index.html

 

the sad thing is the Fed. governors are getting paid for concocting this policy

i think bernanke flicks spaghetti against the wall and sees if it sticks.....

yep, time to bail out somebody...

 

To cause high prices, all the Federal Reserve Board will have to do will be to lower the rediscount rate... producing an expansion of credit and a rising stock market; then when... business men are adjusted to these conditions, it can check... prosperity in mid-career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation, and in either case possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money. They know in advance when to create panics to their advantage. They also know when to stop panic. Inflation or deflation work equally well for them when they control finance... The cost of living will keep going up as long as the laws of nature are violated by uneconomic practices.

Charles August Lindbergh

 

I trade 5's,10's and Bonds every day. It's the most challenging yield curve environment I've seen in 20 years......

 

Has the Fed been injecting liquidity every single day since the big drop and not announcing it?

 

it's always announced... you just have to know where to look.

this is the only place for me to look, i'm not sure if the other fed banks post it as well.

http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

 

Maybe they haven't updated for yesterday.

Definitely got the impression the Fed was in the markets Friday again.

 

One day seems like every other but I believe they did 2b y-day. It's not that big a deal. Obviously they're merely relaxing the targeted rate until there's stability in mortgage land. The front end is breaking not because of liquidity issues but rather because participants are far less assumptive of Fed easing.