Well, it looks like we'll have to update those stats already, thanks to the pop in 30 year bonds (ZB_F) and in TLT on news of Operation Twist, the Fed's telegraphed scheme to sell $400bn of short maturity bonds and reinvest in longer (6 to 30 year) bonds by June 2012.
Here's how the market reacted to that news. Note the flagpole move up in TLT and the 30 year Treasury futures, ZB_F on the intraday charts.
Above: 5 minute chart of the 30 year Treasury futures, via Finviz.com.
Here's an intraday chart of TLT, courtesy of freestockcharts.com.
The updated daily chart of the TLT, marking the August 5th closing price to today's action on the Twist announcement. Chart via freestockchats.com.
So in the space of 20 minutes, we had to recalculate that 6 week return figure (post S&P debt downgrade): the long bond ETF TLT is now up 13% since its close on August 5th, based on an intraday price of $117.70
What a difference a day makes...
2 comments:
Regarding recent Fed actions, I suspect that "Operation Twist" is a stealth effort by the Fed to buy back long-term debt held by China in order to retire this debt -- I suppose this could result in dollars finding their way back into the global economy -- in the end, the result is a kind of quantitative easing for global bankers -- a flood of dollars are about to flood the global economy indirectly via the Chinese...
Interesting, hadn't really thought about that. Thanks for the feedback, William.
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