: Will the Feds pumping 500 billions affect Treasury Bond ETFs? I was wondering about the question above. I was told that the feds pump the market by buying stocks and bonds which theoretically means that they're going to be

Vote Up Vote Down   0 Reactions

Login to give Reaction!

Overnight bank rates dropping to a range of 0.25% to 0.00% could tend to widen the Treasury yield-curve such that longer-term Treasuries drop in price and rise in yield.

But the Fed buying of longer-term Treasuries could tend to increase the price of longer-term Treasuries which reduces their yield.

The result of the moment is that Treasury Notes and Bonds have increased in price and dropped in yield. Obviously, the lower interest rate is currently an indicator of recession and not a concern of inflation. And additionally, the Fed buying of longer-term Treasuries will begin.

Personally, I would avoid the extremes unless I was hedging something. But some analysts do expect the 10-year Treasury Note to rise in price and drop to near 0% yield.