Financial Times FT.com

Yield curve watchers divided over bank power

By Jennifer Hughes

Published: September 25 2009 20:31 | Last updated: September 25 2009 20:31

Reading bond yield curves is to some investors a high form of financial art. To others, it is akin to reading tea leaves for clues about market direction.

Whichever group you subscribe to, there appears to be a new force in town with the power to change the market dynamics round the world: the banks. They appear to be buying a lot of bonds for their own balance sheets and are likely to continue.

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