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The Effects of Quantitative Tightening on Bond Yields
Econ 101 would suggest that if a bank or any party buys bonds the yields should go down. However, there are a lot of people who like to point out we talked about this before that during periods of quantitative tightening Bond yield actually tend to rise and the yield curve tends to flatten. So many things determine interest rates and I know that so sometimes Let's say the Fed is doing stops doing QE and longer dated rates rise But part of that is because there's a risk off move as well now the Fed bought $5.7 trillion of treasuries If you buy five point seven trillion dollars of anything the price probably goes up a little bit.