Therefore during purchase national debt's, the Federal Reserve also will lend generally money the operation through the negotiable securities to provide the negotiable securities to the market, will thus prevent because of its large-scale purchase plan to cause in the market some kind of negotiable securities serious lacking.
Bakelai capital estimated in New York US debt analyst Michael Pond that this Federal Reserve new round quantification loose policy's scale will possibly achieve the Federal Reserve to allow to have the specific negotiable securities limit level, the Federal Reserve will therefore possibly expand this limit to 50% about, also will have the possibility to expand the property purchase the scope.
He estimated that the Federal Reserve possibly concentrates the purchase short and medium term national debt, but if the purchase plan's scale is big enough, then possibly can not but, in the purchase more variety national debts and harm between certain national debt variety market fluidity to carry on the choice.
Excellent group on October 29 also indicated that if the Federal Reserve restarts the quantification loose policy, then the property purchase object will possibly include 30 year time US national debt. Indicated excellently in London analyst Francesco Garzarelli that the Federal Reserve purchases 30 year time possibly to reduce 10 year time /30 year time national debt the income rate difference.
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