/biz/ - Business & Finance

So, what exactly will a twist operation do? Why is it bad there is a spread between long and short term bonds as there is right now?

> Remember there is an inverse relationship between bond prices and yield—when prices go down in value, the yield increases, and vice versa. The Fed’s purchasing activity of long-term debt drives up the price of the securities and, in turn, decreases the yield. When long-term yields fall faster than short-term rates in the market, the yield curve flattens to reflect the smaller spread between the long-term and short-term rates.
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield