The Fed made this announcement and the ETF we use to short the Treasury bond, TBT, took a nose dive.
FAQs on Fed Monetization of US Debt
Fed to start buying Treasurys on Wednesday
By Deborah Levine
2:58 p.m. EDT March 24, 2009
NEW YORK (MarketWatch) -- The Federal Reserve Bank of New York will begin making purchases Of U.S. Treasury securities on Wednesday, starting with debt maturing between 2016 and 2019.
It will continue purchases on Friday and next week, with some days dedicated to purchases of maturities as short as 2-year notes with others for debt maturing in 17 to 30 years, it said in a schedule posted on its website Tuesday.
It did not indicate how much it would buy. The Fed announced last Wednesday it would purchase up to $3000 billion in Treasurys over the next six months. Treasurys rallied, with yields on 10-year notes (UST10Y UST10Y) paring an earlier increase to traded up 1 basis point to 2.66%.
"Some people see God as they see a cow, and love Him as they love a cow — for the milk and cheese, and the profit it brings. This is how it is with people who love God for the sake of worldly possessions or inward comfort. They do not truly love God when they love Him for their own advantage. The eye through which I see God is the same eye through which God sees me; my eye and God's eye are one eye — one seeing, one knowing, one love.”
Meister Eckhart, Predigten und Traktate