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Tapering off
Markets went into a tailspin when the Federal Reserve recently signaled on 06/19/2013 that they would be scaling back their bond buying program (quantitative easing) by year's end. Prices of stocks, bonds, and commodities were clobbered as investors moved to cash. Individual and institutional equity investors who had been riding a wave of easy money rushed to lock in gains, while bond investors became concerned that higher interest rates would wreak havoc on their bond funds.
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The Fed
A U.S. banking system that consists of 12 federal reserve banks, with each one serving member banks in its own district. This system, supervised by the Federal Reserve Board, has broad regulatory powers over the money supply and the credit structure.
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Thomas I. Barkin
Thomas I. Barkin became the eighth president and chief executive officer of the Federal Reserve Bank of Richmond on January 1, 2018. Mr. Barkin served on the board of directors for the Federal Reserve Bank of Atlanta from 2009 to 2014, and was the board's chairman from 2013 to 2014. As the president and chief executive office of the Federal Reserve Bank of Richmond, Mr. Barkin is responsible for all of the Bank's activities, including monetary policy, bank supervision and regulation, and payment services in addition to oversight of the Federal Reserve System's information technology organization. Barkin will serve on the Federal Reserve's chief monetary policy body, the Federal Open Market Committee, as a voting member in 2018.
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Ticks
The minimum upward or downward movement in the price of a security. The term "tick" also refers to the change in the price of a security from trade to trade. Expressed as 1/32
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TIPS
Treasury Inflation Protected Securities - TIPS'
A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed. Interest on TIPS is paid semiannually. TIPS can be purchased directly from the government through the Treasury Direct system in $100 increments with a minimum investment of $100 and are available with 5-, 10-, and 20-year maturities.
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Total Net TIC Flows
Total Net TIC Flows include the total sum of US net private transactions and net official transaction. Important to currency traders and managers of currency assets. Provides a picture, with a substantial lag of inflows into and out of the U.S. (TIC signifies: Treasury International Capital Flows)
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Trade Balance
Also known as the Balance of Trade (BOT), is the difference between a country's exports minus its imports for a given time period. A country importing more than it exports is said to engage in a trade deficit. A country exporting more than it is importing is said to engage in a trade surplus. The balance of trade represents the largest component of the country's balance of payments (BOP). Economists use the BOT to understand the relative strength of a country's economy versus other countries' economies and the flow of trade between nations.
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Trading Day
In business, the trading day is the time span that a particular stock exchange is open. When a trading day ends, all share trading ends and is frozen in time until the next trading day begins. There are several other special circumstances which would lead to a shortened trading day, or no trading day at all, such as on holidays.
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Trading Flat
A bond that is trading at the same price/yield as its closing price the day before.
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Trading range
The spread between the high and low prices traded during a period of time.
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Treasuries
Negotiable debt obligations of a national (federal) government, comprising of treasury bills (maturity less than one year), treasury notes (maturity one to ten years), and treasury bonds (maturity over 10 years). Treasuries are backed by full faith and credit of the issuing government and have low liquidity risk and almost zero credit risk. Since they are the safest form of investment, their yields are typically lower than all other kinds of debt securities of comparable maturities, and is used as a benchmark for evaluating the yields on municipal and corporate debt securities. Treasuries constitute the negotiable debt obligations of a government. Also called treasury securities or (in the UK) gilt edged security (or Gilts).
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Treasury
Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Mint, Bureau of the Public Debt, and the Alcohol and Tobacco Tax Bureau.
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Troika
The troika is a term for the three organizations which have the most power over Greece's financial future - or at least that future as it is defined within the European Union. The three groups are the European Commission (EC), the International Monetary Fund (IMF), and the European Central Bank (ECB).
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