Of particular interest, the program known as Operation Twist ends at the end of the quarter.
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They also neglect the fact that operation twist is by definition a sterilized program.
With the end of Operation Twist, the Fed has largely depleted its stock of short-term Treasuries.
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Later in the week, however, price skidded, after the Federal Reserve opted to only extend Operation Twist.
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The Federal Reserve's stimulus through quantitative easing and Operation Twist also have helped keep steady pressure on yields.
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Fed Chairman Ben Bernanke bluffed markets, extending Operation Twist and promising quantitative easing is on its way.
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The Fed has front loaded money printing each year, QE1 in 2010, QE2 in 2011 and Operation Twist this year.
As a result of that meeting, the Fed announced Operation Twist, a plan to swap shorter-maturity bonds for longer-dated instruments.
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Bernanke once again telegraphed to markets that he is seriously considering extending quantitative easing next year, as Operation Twist expires.
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The gyrations came after the Fed said it would extend its Operation Twist stimulus measure through the end of the year.
The last measure employed by the Fed, Operation Twist, proved to be very unpopular among investors and the market sold off.
Operation Twist had little impact on gold since it essentially was shuffling maturities on its balance sheet, rather than adding to it.
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Prior to the announcement, Operation Twist was scheduled to end June 30.
Operation twist, by definition, sterilizes some securities purchases with sales of others.
Another option may be for the Fed to extend its current Treasury debt-buying program, known as "Operation Twist, " beyond its scheduled June end.
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By the end of the year, when the Fed has sold the last of its short-term bonds, Operation Twist will have reached its limit.
Operation Twist is a program where the Federal Reserve sells shorter-dated securities and buys longer-dated ones in a bid to push down longer-term yields.
Market views appear mixed on whether the Fed will act, but if it does, more Operation Twist may be the most likely outcome, analysts said.
The Fed instead extended its Operation Twist program aimed at keeping long-term borrowing costs low by selling short-term Treasurys and putting the money into long-term bonds.
Operation Twist will continue to the end of this year and the benchmark federal funds rate will be kept near zero until at least mid-2015.
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After two rounds of quantitative easing, and after Operation Twist failed to spur a significant and lasting economic revival, it appears the Fed is out of bullets.
Bernanke also said Operation Twist equates a 50 basis point cut in the Fed funds rate, adding he expected an additional 20 basis point fall in lending costs.
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The Federal Reserve Bank will extend its Operation Twist program, a bond buying program that forces interest rates to historic lows and weakens the value of the dollar.
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On top of this, while the Fed remains easy, we simply do not know yet whether or not QE3 aka Operation Twist gets extended past its June 30th sunset.
In other words, 50% of the FOMC dissented with Bernanke, at least in principle. (Read Operation Twist Set To Fail As Bernanke Insists On Flattening The Yield Curve).
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Once operation twist ends in June, the benchmark treasury will naturally rise 0.4% per year because of the change in the average maturity date of the treasuries they hold.
When the Fed did indeed announce its QE3 program, it was widely expected that commodity prices, including oil prices, would surge higher as they did after QE2 and Operation Twist.
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The Chairman of the Federal Reserve defended his decision to embark in an open-ended, third round of quantitative easing (QE3), extend Operation Twist, and extend their forward-rate guidance to 2015.
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The U.S. economies need for additional monetary stimulus, be it via quantitative easing or operation twist-like bond buying programs, is diminishing, say Barclays Capital analysts in a note on Monday.
In addition to purchasing mortgage-backed securities, the committee said Operation Twist, the bond swapping program, will be extended through the end of the year and its forward guidance through 2015.
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