While the Fed does not control mortgage rates directly, its policies do have
an influence on the bond market and the lending industry.
Can the Fed once again exert
influence on the bond market?
Not exact matches
Higher
bond yields have had a dampening
influence on share
markets around the world in recent months.
Many of these factors were outside of central banks» control until the introduction of quantitative easing, which allowed central banks to better
influence long - term interest rates by buying
bonds on the secondary
market to push down long - term rates and to create new bank reserves.
Mortgage rates,
on the other hand, are
influenced by the 10 - year US Treasury
bond, which is determined by the
market, not the Fed.
The price of a fund's shares and the cash flows you receive will depend
on the
bond market's fluctuations — which are
influenced by changes in interest rates — and, of course, the manager's skill.
Does your broker keep you informed
on market influences and possible alternative
bond investments given your financial objectives?
Parallel measures to ESM und EFSF such as the ex-ante unlimited purchase of sovereign
bonds, the neutralization of interest spreads, the higher risk of suffering a haircut
on debt, the possibility to hold sovereign
bonds until they are due, and the
influence on market indices and stock prices, as well as the intended persuasion of participants to purchase government
bonds on the primary
market, lead the BVerfG to redeem OMTs as such bypasses.
The negative
influences of war and terrorism remain: upward pressure
on oil prices, declining affordability of terrorism insurance, and a wobbly equity and
bond market.