4min chapter

Forward Guidance cover image

European Bonds Throw A Tantrum | Joseph Wang

Forward Guidance

CHAPTER

The Fed's Quantitative Tight Network

The Fed will tell you what this overnight rate is going to be for the next few Let's say months few years. No one has any idea what the overnight rate would be so it's morally mostly supply and demand. It's just go up straight up and buy assets buying trillions of treasuries. This feeds directly into the entire market The reason in being that people hold these assets They're kind of forced to hold them because they're considered to be credit risk-free. And if the Fedford their tightness as some people expect it Well, and does Q we you could have some serious serious Dislocation in the risk marketsSo much to worry about with a trillion dollar company like

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