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The traders inflated the value of the bonds to increase their 2007 year-end bonuses, prosecutors said.
Despite the paltry yields, fixed-income investors have been cushioned for the last few years by falling interest rates, which allowed the value of their bonds to increase as yields declined.
Some economists said the Bank of England was unlikely to cut its interest rates from the current 0.5 percent because buying government bonds to increase available capital, known as quantitative easing, is seen as a more effective measure to help the economy.
Here are the four most important questions that the Federal Reserve will answer Wednesday afternoon after the latest meeting of its policy-making committee: Since January the Fed has expanded its bond holdings by $85 billion a month — $45 billion in Treasuries and $40 billion in mortgage bonds — to increase the pace of job creation.
Japan has remained trapped in this spiral despite the equivalent of trillions of dollars in stimulus spending, more than a decade of near-zero interest rates and even unconventional steps by the central bank similar to those now contemplated by Mr. Bernanke, like purchasing corporate and government bonds to increase the money supply.
The rebound in output, coming after encouraging signs of improvement in exports and retail sales, lends further support to the Bank of Japan's view that the economy will recover by the end of this year, reducing the need for additional monetary easing — the buying of government bonds to increase market liquidity.
Similar(47)
Cooperation of this kind between covalent and hydrogen bonding, to increase the tensile stiffness of a molecule, has not to the best of our knowledge been previously described.
They plan to invest 50% in equities and 50% in bonds and to increase their bond holdings slightly each year.
Euro zone leaders have promised to use the fund to both provide insurance for investors looking to buy risky Italian and Spanish bonds and to increase its borrowing capacity to as high as 1 trillion euros.
Banks often try to offset some of the risks they incur by, for instance, buying derivatives that would rise in value if defaults on loans or bonds were to increase.
The local destruction of interatomic bonds seems to increase at over 6 μN because of the concentrated stress and reaction of the newly formed surface with surrounding materials.
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