Replies to post #22269 on Cycle Trading

[Duma]

it needs to be removed from the TGA in the form of T-bills.

Okay what does that mean "remove in the form of T-bills" If the government sells a T-bill, doesn't that just bring in more money.

To me they would have to buy T-bills to use up the cash, and that should drive up the price of the bonds and thus lower the interest rate. Bingo, I think I got it.

Does this now sound right?