Sober Look

US bank reserves at the Fed grew about $27bn, with the "other" category showing up in reserves this week (as Lee Adler discussed...

US swap spreads continue to decline, as the 5y spread hovers below 10bp. A rate swaps is basically a stream of floating (3m LIBOR) vs. fix...

As part of Operation Twist, the Fed was taking tremendous amounts of duration out of the market. In effect the average duration of outstan...

The ECB has been quite clear about focusing their bond buying on the short end of the curve (see this discussion ). There has been some sp...

By focusing on the short end of the Eurozone periphery curves, Draghi's comments resulted in curve steepening for both Italy and Spai...

The most probable outcome of the FOMC meeting currently under way is the continuation of "Operation Twist" and possibly the exte...

There has been some confusion about the potential policy actions the Fed could undertake at the next meeting. This is what we could expect...

Here is a quick follow-up to an earlier post discussing the Fed's diminishing short-term treasury note position. The Fed is basically...

Fed's Operation Twist is starting to introduce some "unintended consequences" into the market. The 10-year treasury yield ...

The Fed has now sold over half of its short-term treasury note holdings (sold $269bn with $257bn remaining) as part of the Maturity Extens...

Guest post by TheDealer There is no direct evidence for this, but folks on trading floors are saying the Fed may be trying to smack down...

This week we finally saw a sell-off in longer term treasuries after a relentless rally. With a great deal of new supply hitting the market...

Part of the explanation for the strength in the longer term treasury markets continues to be Fed's Operation Twiest Businessweek :...

Below is a chart that shows how the Fed's Operation Twist is targeting treasuries of various tenors. Basically it's selling the 2-...