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Treasury Tweaks Coupon Auction Guidance First Time Since Yellen
For the first time since Janet Yellen inaugurated conciliatory language to placate an irritable mark
Doesn’t much affect me except (maybe, if I understood the treasury ~ bond markets better) in portfolio allocation choices among and to various bond ~ treasury ETFs……but I nevertheless find such commentary interesting. Gotta keep learning something every day, until my days are done!
+1. Please keep the esoteric quasi-arcana coming.
I must be in the minority and whilst I don’t trade on this info it’s useful market intelligence.
There’s another subset which I suspect is larger than either other subset of the subsets you’ve subjected to subset subjects.
It’s the subset of people who just find this sort of thing interesting even when it doesn’t change a thing. I’m certainly part of that subset. [Monica: Stop saying “subset.”]
While subtle changes to the belly yield curve will have an impact on me–and many others–just because I have duration exposure might be relevant, they’re certainly not going to change my behavior. I’m not buying, selling, or hedging one iota differently. Rather, I find it interesting the same way I find cars interesting.
I had a friend in college who was a huge gear head. He could talk for hours about big-block vs. small block engines, speak intelligently about rebuilding a carburetor (2 barrel is easier than 4 barrel), and so on. He’s the kind of guy who would take an engine block to a machine shop and have them bore out the cylinders for improved displacement. I learned so much from him. It never changed a single decision in my life, but I loved learning about it.
It’s the same thing with changes to forward guidance to the QRA. Does it matter to me? Well technically, yes, a little. Am I going to do anything one jot differently in consequence? Absolutely not. So does this article make the price of a subscription a bit more worth it?
Absolutely.
Also timely in context of Fed stopping QT…
Ditto. Appreciate these topics that help me learn a bit more about how things work, and the recap is very useful too.