Operation Twist – unmet goal, for now

Miscellaneous | Prieur du Plessis | October 30, 2011 11:50 pm

Article written by Prieur du Plessis, editor of the href="http://www.investmentpostcards.com">Investment Postcards from Cape Town blog. /> style="text-align: justify;">The Fed announced Operation Twist on September 21, 2011 with the objective of driving long rates to a lower level. How have they fared so far?

style="text-align: justify;">“The 10-year Treasury Note yield closed at a low of 1.72% on the day after the new policy was instituted. As of this writing, it is trading at 2.33%. The 30-year mortgage rate dropped briefly to 3.94% but is back up at levels seen just prior to the announcement (4.10%),” said Asha Bangalore of href="http://www.investmentpostcards.com/2011/10/31/Local%20Settings/Temporary%20Internet%20Files/Content.Outlook/I3TZVG2M/www.northerntrust.com">The Northern Trust Company.

style="text-align: justify;">In short, the 10-year Treasury Note yield has moved up and the 30-year mortgage rate is holding at a level seen before Operation Twist was announced, indicating a relatively unsuccessful Operation Twist, for now.

style="text-align: justify;"> href="http://www.investmentpostcards.com/wp-content/uploads/2011/10/nT2.jpg" > class="alignnone size-full wp-image-35206" style="border: 1.5px solid black;" title="nT2" src="http://www.investmentpostcards.com/wp-content/uploads/2011/10/nT2.jpg" alt="" width="502" height="395" />

style="text-align: justify;">Source: href="http://www.northerntrust.com/" >Northern Trust – Daily Economic Commentary, October 28, 2011.

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