Re: Term of the Day: Operation Twist

On Mon, Oct 3, 2011 at 7:00 PM, Investopedia.com <webmaster@investopedia.com> wrote:

TERM OF THE DAY - OCTOBER 3, 2011 Add Investopedia to Safe Sender List Find Investopedia on Operation Twist What Does it Mean? The name given to a Federal Reserve monetary policy operation that involves the purchase and sale of bonds. "Operation Twist" describes a monetary process where the Fed buys and sells short-term and long-term bonds depending on their objective. For example, in September 2011, the Fed performed Operation Twist in an attempt to lower long-term interest rates. In this operation, the Fed sold short-term Treasury bonds and bought long-term Treasury bonds, which pressured the long-term bond yields downward. Investopedia Says... The name "Operation Twist" was given by the mainstream media due to the visual effect the monetary policy action was expected to have on the shape of the yield curve. If... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - Top 6 Uses For Bonds Individuals and institutions can use bonds in many ways: from the most basic, such as for preserving principal or saving and maximizing income, to more advanced uses, like managing interest-rate risk and diversifying a portfolio.  View the Slideshow » Special Feature - Economic Recovery: Get Ready Take advantage of this once-in-a-lifetime opportunity in the financial markets. Click here for more. Related Terms Alan Greenspan Fed Model Tight Monetary Policy See More » Related Links What Is Fiscal Policy? How Much Influence Does The Fed Have? Forces Behind Interest Rates See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.