Long-term yields plunge as Fed initiates Operation Twist

fomc

Movements in US Treasury yields suggest that the Federal Reserve's decision to buy $400 billion in long-dated bonds has successfully twisted the yield curve. However, whether the programme will help boost the US economy and prevent a prolonged slowdown remains to be seen.

After a two-day meeting in Washington, the Federal Open Market Committee (FOMC) on Wednesday announced it would purchase $400 billion of Treasury securities with remaining maturities of 6–30 years, by the end of June 2012, and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.