SLP467 An Unsustainable Fiscal Path with James Lavish
Stephan Livera Podcast
00:00
What Happens in the Open Market to Debt?
Banks bought longer-dated treasuries expecting, well, rates are not going to go up that much. If you need capital before that debt matures, you have to sell it in the open market. There's an inverse relationship between price and yield, right? So if a bond is yielding 4%, it's going to be priced lower than a bond that's yielding 1%.
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