Yes, folks; Bloomberg reports that Wall Street’s biggest bond traders are stockpiling Treasuries at the fastest pace since 2007 on speculation the Federal Reserve will announce a plan this week to buy longer-term debt to spur the faltering economy.
The 20 primary dealers held $15.1 billion of Treasury securities due in more than one year as of Sept. 7, the most since December and up from a $75 billion bet against the debt on May 6, Fed data show. The last time dealers bought bonds at such a rapid pace was between July 2007 and September 2007, as losses on subprime mortgages began to infect credit markets and the central bank unexpectedly cut interest rates.
All but one firm expects the central bank to announce some type of what traders call Operation Twist, according to a Bloomberg News survey, the latest step by the Fed in its four- year effort to keep the economy out of a recession. U.S. debt due in 10 years or more has returned 17 percent this quarter, the most since the last three months of 2008, as unemployment holds above 9 percent and growth slows…
More? Check out http://www.businessweek.com/news/2011-09-18/dealers-add-90-billion-of-treasuries-in-biggest-spree-since-07.html
.
No comments:
Post a Comment