I do not have the detailed economic understanding of this matter but have observed that a rise in the US 10 year treasury yields leads to a overall feeling of fear and turmoil in the markets. Back in the March and April of 2021, US10Y was continuously making news as it was reaching levels of about 1.75, with commentators discussing how a test of the levels of 2...
At their policy meeting in December, FOMC participants agreed to double down on QE pace to close the same by Mar’22 amid growing concerns about hotter inflation. Fed officials also began discussing at the December meeting about balance sheet (bond holdings), and some policymakers are pushing to start shrinking them sooner and faster than they did after an earlier...
