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
Minister Shirley Bond at supply chain luncheon
Image by BC Gov Photos
Minister Shirley Bond connects with other members of the industry at a Supply Chain Logistics luncheon while in Hong Kong during an Asian trade mission.
Orignal From: How are the yields on short term government bonds determined? and Minister Shirley Bond at supply chain luncheon
No comments:
Post a Comment