Fed Twists Yields for McDonald’s Record Low Rate: Credit Markets
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Federal Reserve Chairman Ben S. Bernanke’s Operation Twist is paying dividends in the corporate bond market.
The central bank’s program to extend the average maturity of debt in its portfolio by selling short-term bonds and buying longer-term ones is helping borrowers from McDonald’s Corp. to Procter & Gamble Co. cut interest rates to record lows. Since August, the difference in yields between notes due in one to three years and bonds that mature in 15 years or more has shrunk by 0.7 percentage point to 3.3 percentage points.