Yields pull back from multi-year highs after Treasury Department says it will double government debt repurchase size
Posted by neolthrowaway
Yields pull back from multi-year highs after Treasury Department says it will double government debt repurchase size
Posted by neolthrowaway
3 Comments
we are hurtling ourselves toward a financial crisis and no one seems to give af
Any econ understander please ELI5: we have massive govt debt because we borrow to pay for things, yet the govt is helping to ease the problem by buying our debt? With what money? Is this the money printer?
Ok so for people like myself who’ve never heard of what a government debt repurchase is, they’re buying back bonds with older yields by paying investors back the issued bond before their maturity date, allowing these investors to take out new bonds with their liquidity.
In effect, this is smoothes out yields over time.