The Fed's Liquidity Silo

The Bank of Japan has been the anchor in the global bond market for the last 30 years. Once they lift that yield curve next week, which we think there's a decent chance that can happen, then all of a sudden that's another influx of money that goes away. It also may de-anchor theglobal bond market. Forget about the bills market. And if the 10 year treasury actually goes up on the back of more supply and there's not another buyer out there in the global Bond market, central bank, you know, not doing it anymore,. That would be a very challenging environment.

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