When the Fed announced a new
round of bond purchases, interest rates on 10 - year Treasuries did drop.
Not exact matches
That data raised a fresh
round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly
bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.
The
bond purchases, the third
round of quantitative easing embarked upon by the Fed in the wake
of the 2008 financial collapse and subsequent recession, have kept interest rates and
bond yields low.
Valeri noted that could change, though, as occurred with the first
round of quantitative easing, where a massive $ 1.25 trillion
purchase of mortgage - backed securities was followed months later by a large - scale
purchase of Treasury
bonds.
Awash in Liquidity The second
round of quantitative easing, known as QE2, follows the Fed's
purchases of nearly $ 2 trillion
of bonds during the Great Recession.
Wall Street would like to see another
round of quantitative easing, where the central bank
purchases bonds, but that may be too aggressive a step at this time.
Central bankers around the world are debasing fiat currencies with
rounds of quantitative easing, resulting in trillions
of government
bonds being
purchased and swapped.
Every time you make a
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