Bonds

• 3 types (for the us)
  • Bonds (10 to 30 y)
  • Bills
  • Notes

What is QE (Quantitative easing)?

• used by central banks
• central banks buy government securities to lower the interest rates
• so central banks (creates money digital money / print money) and buys things
• Effects
  • Increase asset prices (including stocks and real state)
    • this new money → normally go to easy targets like real state or stock
  • potentially higher inflations (modest impact in many cases)
  • Currency depreciation