Except the FED has about $9 trillion on its balance sheet, and about two-thirds of that is U.S. government debt. At the height of the COVID fiasco it was buying $120 billion worth of bonds every month.
Your assumption drawn out to it’s logical conclusion is that all the traders and portfolio managers are dim witts and do not know how to properly price the inveztments they buy and sell.
Not at all. My assumption drawn out to its logical conclusion — which was the basis of my original post on this thread — is that this isn’t a “free market” anymore and has all the characteristics of a rigged game.
The FED IS NOT buying bonds cuurently so who is doing the rigging right now?
“The central bank has purchased over $4.5 trillion worth of those assets since the pandemic tanked the economy in March of 2020. According to the minutes, the Fed will start getting rid of those bonds to the tune of $95 billion a month.”
They are now “rigging” yields higher, how does that support your explanation for yields right now? (hint - it doesn’t)