Fed Drops Rate .25%…Market tanks.

[AK]

Could it be that the foreign investors are liquidating their US assets because of the expect devaluation of US currency due to the rate cut?

Good point Arty!

[NeetaT]

Will this help or hurt overseas funds?

[NeetaT]

Will this help or hurt overseas funds?

[NeetaT]

Will this help or hurt overseas funds?

[NeetaT]

Will this help or hurt overseas funds?

[NeetaT]

Will this help or hurt overseas funds?

[GoUSC]

Arty,

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

[GoUSC]

Arty,

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

[GoUSC]

Arty,

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

[GoUSC]

Arty,

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

[GoUSC]

Arty,

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

[Arty]

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

Fed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet). You can’t say because the price is raising is purely due to no withdraws. T-Bills are also mainly holded by foreign governments, they don’t act as fast as the private investors. I mean Fed don’t set the interest rate by doing nothing. They have to conduct market operations to do it, and usually you cannot have 10 years yield higher than the short term one (am I right about this?). The current bond market is simply reflecting the Fed operation.

[Arty]

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

Fed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet). You can’t say because the price is raising is purely due to no withdraws. T-Bills are also mainly holded by foreign governments, they don’t act as fast as the private investors. I mean Fed don’t set the interest rate by doing nothing. They have to conduct market operations to do it, and usually you cannot have 10 years yield higher than the short term one (am I right about this?). The current bond market is simply reflecting the Fed operation.

[Arty]

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

Fed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet). You can’t say because the price is raising is purely due to no withdraws. T-Bills are also mainly holded by foreign governments, they don’t act as fast as the private investors. I mean Fed don’t set the interest rate by doing nothing. They have to conduct market operations to do it, and usually you cannot have 10 years yield higher than the short term one (am I right about this?). The current bond market is simply reflecting the Fed operation.

[Arty]

Exactly. If foreign investors were getting rid of US denominated assets they would be selling T-Bills. Lowering the price and raising the yield. Exact opposite is happening.

Fed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet). You can’t say because the price is raising is purely due to no withdraws. T-Bills are also mainly holded by foreign governments, they don’t act as fast as the private investors. I mean Fed don’t set the interest rate by doing nothing. They have to conduct market operations to do it, and usually you cannot have 10 years yield higher than the short term one (am I right about this?). The current bond market is simply reflecting the Fed operation.

[Author]

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