The rumors of Operation Twist have come true as the Fed will be buying $400 billion of long-term (6 to 30 year maturities) bonds to put downward pressure on long-term rates. They will sell $400 billion of short-term debt to keep their balance sheet (short-term at least) at the same level.
http://www.bloomberg.com/news/2011-...-longer-term-securities-in-stimulus-step.html
http://www.bloomberg.com/news/2011-...-longer-term-securities-in-stimulus-step.html
