why do the yield of long term treasuries rise when the fed starting bumping liquidity to the market?
why do the yield of long term treasuries rise when the fed starting bumping liquidity to the market?
- Thread starter Newtonthirdlaw
- Start date
KISS explanation... Fed pumping liquidity is bullish for stocks. Players sell their bonds to have money to buy stocks.
People worry about too much money floating around and causes inflation.
When market tanked, folks worried about deflation/recession and started buying up treasuries as protection so yield fell.
I am just an amateur trader so don't take my logics/answers seriously, it is a WAG.