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A highly placed scholar is encouraging China to offload more of its holdings in Treasuries as overseas assets become a riskier proposition thanks to erratic geopolitical shifts.
Demand in the market, which lowers the interest rates, increases the price of bonds. bonds trade inversely to their interest rates. so that will drive down interest rates, encouraging people to borrow more money. >> so what is this going to do to the housing market? we've seen a slow recovery come back? should this really be a shot in the arm? >> it should help encourage that recovery along. what it does, it keeps mortgage rates lower than they ordinarily would be. >> and for the long-term? >> and for a longer period of time. >> okay. they're setting goals for the unemployment rate and inflati...
He can't do much more with that. but long-term interest rates he can try to drive down by buying mortgage-backed securities, by buying treasury securities. in a sense, creating artificial demand in the market, which lowers the interest rates, increases the price of bonds. bonds trade inversely to their interest rates. so that will drive down interest rates, encouraging people to borrow more money. >> so what is this going to do to the housing market? we've seen a slow recovery come back? should this really be a shot in the arm? >> it should help encourage that recovery along. what it does, it ...
Lowers the interest rates, increases the price of bonds. bonds trade inversely to their interest rates. so that will drive down interest rates, encouraging people to borrow more money. >> so what is this going to do to the housing market? we've seen a slow recovery come back? should this really be a shot in the arm? >> it should help encourage that recovery along. what it does, it keeps mortgage rates lower than they ordinarily would be. >> and for the long-term? >> and for a longer period of time. >> okay. they're setting goals for the unemployment rate and inflation rate. what does that tell...