I've been telling people Yield Curve Control (YCC) was coming, and make no mistake, the BTFP is a version of YCC. All these bonds were trading at a discount to par and this facility prompt-up their prices to par (for a year...which can be completely extended if needed).
Discussion
Have you read haye's latest blogpost? It's exactly that.
Do you have a link?
https://entrepreneurshandbook.co/kaiseki-b15230bdd09e
In exchange I want you to come back here and tell me what you tought of it.
You're right, it sort of is YCC. Not sure they've left themselves with any choice, either.
Does par mean the price they originally bought the bond at? Or what it will eventually mature at? Or are those the same with the interest being paid out periodically between sale and maturity?
Classic move. Do it indirectly so they can make up a new name for the same old trick
I just learned we did YCC in the 1940's, and I thought Operation Twist was the original
I remember you talking about YCC coming even before the pandemic began. I can't believe how fast we got to this point.