http://jubakpicks.com/2009/11/04/stocks-and-bonds-take-away-different-messsage-from-the-fed/ Sat, 19 May 2012 20:47:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://jubakpicks.com/2009/11/04/stocks-and-bonds-take-away-different-messsage-from-the-fed/comment-page-1/#comment-1680 Jim Jubak Fri, 06 Nov 2009 17:23:00 +0000 http://jubakpicks.com/?p=2038#comment-1680 Anytime a buyer--in this case the Fed--walks away from a market prices in that market go down. That's what bond traders and bank stock analysts didn't like about the Fed's language on agency debt. Anytime a buyer–in this case the Fed–walks away from a market prices in that market go down. That’s what bond traders and bank stock analysts didn’t like about the Fed’s language on agency debt.

]]> http://jubakpicks.com/2009/11/04/stocks-and-bonds-take-away-different-messsage-from-the-fed/comment-page-1/#comment-1660 cgegax Thu, 05 Nov 2009 18:27:36 +0000 http://jubakpicks.com/?p=2038#comment-1660 In the Fed's statement about lowering their purchases, they said, "The amount of agency debt purchases, while somewhat less than the previously announced maximum of $200 billion, is consistent with the recent path of purchases and reflects the limited availability of agency debt." Sound to me like they put up $200B but there just wasn't that much to buy, so they are lowering it. Whether that's the result of agencies producing less volume or other investors buying more of it is not clear. The former would be bad news for banks. The latter would be a sign of things getting back to normal, which should be a good thing in the long run. In the Fed’s statement about lowering their purchases, they said, “The amount of agency debt purchases, while somewhat less than the previously announced maximum of $200 billion, is consistent with the recent path of purchases and reflects the limited availability of agency debt.” Sound to me like they put up $200B but there just wasn’t that much to buy, so they are lowering it. Whether that’s the result of agencies producing less volume or other investors buying more of it is not clear. The former would be bad news for banks. The latter would be a sign of things getting back to normal, which should be a good thing in the long run.

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