So first, a little bit of definitions.

So these treasury securities, whether they're T Bills, treasury bills, treasury notes, or treasury bonds.

But hopefully at this point you have a sense of what the yield curve is.

And this is just definitional.

What is even a treasury?

That's just a definitional thing.

Actually, I believe the one year itself is a note.

Then from one year to 10 year, these are notes.

Similarly, if it's three months, it's a three month treasury bill.

So I will give the government 1,000, the government would give me a treasury bill.

Because if you lend to the federal government and they're running short of cash, all they have to do is increase taxes on us the people and they can pay back your debt.

Synchronizing

Once that happens, then we're ready to enter into the metaphase I, so let's go down to metaphase I.

longer, so things that are maybe going to maybe 10 year treasury bonds, or further out than even that.

RTF In Sync

The chromosomes line up during metaphase.

The first one was prophase.

Did you say Kadowaki?

Maybe debt that you have to pay in the next year.

We'll see that when we actually go through the phases.

Then after you've done meiosis 1, then it all happens again.

Abort Synchronization

I kind of drew them well aligned here, but that just kind of formally occurs during metaphase, which is the next phase.

And maybe the fed is able to, through intervention, first they're able to print money, normally they buy shorter term debt, maybe they start buying longer term treasury debt, and maybe that helps get the yield curve, for longer term treasuries down a little bit.

But this I just want to show you some data here.

Initiating protocol...

Initializing Modem

Initializing manager...

So that's maybe like here.

Remember, this is the annual interest rate but this is an overnight loan.

Your face doesn't look good.

That's one of them and that's the second of them.

This country is supposed to be civilised!

Yes, I went to an employment agency.

In mitosis you have prophase, metaphase, anaphase and telophase.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

But the whole point of open market operations is to set this overnight borrowing rate.

We have a video on it where we go into the phases of it prophase, metaphase, anaphase and telophase.

Since all of this happens during prophase, this latter part of prophase, sometimes they'll call it late prophase, sometimes it'll be called prometaphase.

Initializing printing system...

Total assets.

This would be something like here on our graph.

Let's say that it has, I don't know, 1 billion 1 billion in government bonds,

Let me draw this yield curve right over here, so this is maturity on the horizontal axis, and this is yield, and I'm gonna draw the yield curve for treasuries.