January 23rd, 2011, 12:31 pm
I recently came upon a NYTimes article that contained the following quote:QuoteWhen devising the program, Mr. Frost and his team decided to focus most on buying Treasury notes with an average maturity of five to six years. That is because the yields on these notes have the biggest impact on interest rates for mortgage holders, consumers and companies issuing debt, and on banks? decisions to lend to businesses. Over the weeks and months of the program, his purchases should drive up the prices of these securities because they will be in greater demand and consequently push down their yields.Does anyone know where I can find information/resources about why 5-6 year maturity Treasuries "have the biggest impact on interest rates for mortgage holders, consumers and companies issuing debt, and on banks' decisions to lend to businesses?" As opposed to those with 4 or 7 year maturity?
Last edited by
mmautner on January 22nd, 2011, 11:00 pm, edited 1 time in total.