QE1 and QE2 yield clues about QE3 impact

QE1 and QE2 yield clues about QE3 impact

The Fed has taken extraordinary measures since 2008 to help keep long-term interest rates low through two rounds of quantitative easing, known as “Operation Twist,” followed by a third round of easing that targets the mortgage-backed securities market.

The risk in low rates

The risk in low rates

Despite the uncertain macroeconomic environment, we continue to believe that a strategy that relies on rates declining further to drive returns is a risky proposition. At current levels, interest rates would not have to increase much in order for investors to start seeing price declines in Treasuries and certain other high-quality bonds that today offer

Long-term interest rates may see movement

Long-term interest rates may see movement

Around the world central bank interest-rate policies have diverged to address different challenges, including the eurozone debt crisis, but efforts in the United States, Europe, and Japan to hold short-term rates low could cause movement in long-term interest rates.