How Yields May Defy Wall Street Logic Once Unwind Begins

The video discusses the effects of quantitative easing (QE) on bond yields, highlighting that contrary to expectations, yields have risen during QE periods. As the Federal Reserve begins to unwind QE, there is uncertainty about whether yields will rise or fall. The discussion includes the potential for yields to remain stable or decrease despite the Fed's pullback, due to the economy's slow return to pre-crisis growth levels. The video also addresses the Fed's tightening measures amidst low inflation and moderate GDP growth, questioning the basis for higher yield forecasts.

What challenges are presented regarding the absorption of the treasury market by the private sector?

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In what context is the Fed tightening monetary policy, and what implications does it have for yields?

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