Treasury Purchasing Program?

What is a treasury purchasing program? lol

A plan to buy treasuries?

Give me the context and I may be able to help.

no, the definition of the program, im new to all these financial world

i agree with rhodytrader, its just buyin tresuries i think :slight_smile:

I may be wrong here because you haven’t provided the necessary context of the term’s use, but what you may be referring to is the recently concluded “quantitative easing” program of the Fed"s in which it purchases Treasury securities.

yes yes, the QE, what is it? i mean how is it done? and why would they be doing it? i though reducing the interest rate would have been enough?

Very simple. Fed buys Treasuries from the primary dealers (don’t ask me to get into the mechanics of it all). It allows the Fed to put downward pressure on longer rates, which they cannot directly influence through rate moves.

where can I learn about how they work or how they affect the market? id love to learn more about them lol, im new to all these stuff since i just started trading 4 months

Not much to learn. Fed buys Treasuries from the market, creating increased demand for those instruments. Also, by holding those securities the Fed keeps them out of the supply. So increased demand and decreased supply equals higher Treasury prices, which means lower Treasury yields.

The forex market doesn’t like quantitative easing because it increases money supply and lowers interest rates. More money at lower rates means less desireable currency.

If you really want to get into the nitty gritty of the program I’m sure you can find info on the Fed’s website.

hahaha thanks man!

oh is that wat it is, cool cool