WATCH YIELDS PART 2

We wrote just yesterday to WATCH YIELDS. Looks like someone else was watching.

“The U.S. Department of the Treasury is increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities (the 10-year to 20-year sector and the 20-year to 30-year sector). The current maximum size of $2 billion per operation will be at least $4 billion per operation.”

We are less than thrilled that our government continues to not let our free markets be free but so far, yields coming down decently this morning on the news…giving a lift to markets. Do not forget, this is the same government with $40 trillion of debt, $2 trillion+ yearly deficits and all that crap. Outcome will be all that matters. Thirty year down almost a stick on this news with the 10 year down 0.65.