How are the yields on short term government bonds determined? and California Zephyr at Bond Colorado

How are the yields on short term government bonds determined?

Also, what are the different types of government bonds?


Bond best answer:

Answer by not I said the ape
as of late, they are determined through "manipulation" by the central bank. the central bank buys and sells short- and long-term treasuries to 'manipulate' the yields and thereby influence traders to invest accordingly and thwart recession. for example, they may aim to reduce the yield on the short-term treasury in an effort to force cash into other investments and allay the prospect of recession. the tell-tale foreboding of recession in past times has been whats called an "inverted yield curve" which simply means that short-term yields exceed long-term yields and suggests that investors expect a recession in the near future and that is what motivated or led them to bid up the price of the longer term bond and push down it's yield. the latest bout of "manipulation" by the central bank was coined "operation twist" and while they embark on these pricing escapades with good intentions, they really just end up throwing chum to the sharks

Bond

California Zephyr at Bond Colorado


Image by Loco Steve
A View From The California Zephyr at Bond Colorado as it travels along the Colorado River , East on its way to Chicago
October 5, 2010 at 2.59pm CDT

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