On 2013-08-15, at 4:26 PM, Jim Devine wrote: > > Jurriaan Bendien wrote: > >So why are rates rising? < > > I don't know. It's possible that lenders are switching strategies, from > credit rationing to using interest rates.
Investors are speculating that the Fed will, in line with its "forward guidance", begin tapering its purchases of MBS's and Treasuries, probably by about $15 billion a month (from $80b) later this year, possibly as soon as next month. This reduction in Fed demand is expected to push yields up and prices down, reducing the worth of the current bond portfolios of the banks, hedge funds, and other domestic and foreign investors. So they're selling on the rumour, forcing rates up in anticipation. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
