Putnam US Government Income Trust
The Federal Reserve seems ready to tighten its monetary policy stance. But before we move ahead with our analysis, let’s make sure we understand why the Fed’s tightening in the first place.
“ZIRP” (zero interest-rate policy) is a term that’s used to refer to monetary policy in the US. It refers to low nominal interest rates in an economic system.
Some market participants point out that regulations give cause for worry about bond market liquidity because they hinder banks’ market-making capabilities.
The U.S. Department of the Treasury auctioned $20 billion worth of 52-week Treasury bills on September 15, 2015. T-bills mature in one year or less.