Long-term yields plunge as Fed initiates Operation Twist
Movements in US Treasury yields suggest that the Federal Reserve's decision to buy $400 billion in long-dated bonds has successfully twisted the yield curve. However, whether the programme will help boost the US economy and prevent a prolonged slowdown remains to be seen.
After a two-day meeting in Washington, the Federal Open Market Committee (FOMC) on Wednesday announced it would purchase $400 billion of Treasury securities with remaining maturities of 6–30 years, by the end of June 2012, and
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