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It would stay the same gurrrl
open market A+
treasury bonds are risk free bonds.
The Bloomberg web site has excellent information on current Treasury Bond rates under its Market Data/Rates and Bonds link. TreasuryDirect is also an excellent web site that gives an in depth explanation about treasury bonds.
open market operations
The Fed sells $5 billion worth of Treasury bonds on the open market.
It would stay the same gurrrl
Prices tend to go up as demand has increased.
The money supply would stay the same because no new money would be created.
The money supply would stay the same because no new money would be created.
AnswerYes, Treasury bonds generally "trend" in the opposite direction from the stock market.
If bonds are sold then the supply of money decreases.
open market A+
The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits.
The major money market instrument are treasury bills and bonds, federal agency.
treasury bonds are risk free bonds.
Open Market Operations