Short Treasuries looking pretty good after FOMC announcement. what a move.
Anybody else short US 30 Bond
- Thread starter richard_m
- Start date
Taken together, the Desk anticipates conducting $850 billion to $900 billion of purchases of longer-term Treasury securities through the end of the second quarter. This would result in an average purchase pace of roughly $110 billion per month, representing about $75 billion per month associated with additional purchases and roughly $35 billion per month associated with reinvestment purchases.
The Desk plans to distribute these purchases across the following eight maturity sectors based on the approximate weights below:
Nominal Coupon Securities by Maturity Range
<img src="http://www.mortgagenewsdaily.com/cfs-file.ashx/__key/CommunityServer.Components.UserFiles/00.00.03.44.60/11_5F00_3-NY-FED-STATEMENT.PNG" />
Under this distribution, the Desk anticipates that the assets purchased will have an average duration of between 5 and 6 years. The distribution of purchases could change if market conditions warrant, but such changes would be designed to not significantly alter the average duration of the assets purchased.
The Desk plans to distribute these purchases across the following eight maturity sectors based on the approximate weights below:
Nominal Coupon Securities by Maturity Range
<img src="http://www.mortgagenewsdaily.com/cfs-file.ashx/__key/CommunityServer.Components.UserFiles/00.00.03.44.60/11_5F00_3-NY-FED-STATEMENT.PNG" />
Under this distribution, the Desk anticipates that the assets purchased will have an average duration of between 5 and 6 years. The distribution of purchases could change if market conditions warrant, but such changes would be designed to not significantly alter the average duration of the assets purchased.
Here we go... Anyone wanna hazard a guess where 10s30s are going to?
Very nice, indeed...Quote from sjfan:
Good thing I went into this thing long 5s and added to a 5s30s steepener; Sitting happy
There was speculation (by a few supposedly knowledgeable think-tanks) that the Fed is going to pile into the long end of the curve. Clearly, some people bought this story...