Investment Banks: If bonds continue to fall, the Fed will rush QE

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Jin10 data April 9th, Deutsche Bank stated that if the volatility pushing the long-term borrowing costs in the U.S. above 5% continues, The Federal Reserve (FED) will need to intervene to stabilize the U.S. Treasury market. On Wednesday, concerns over the asset security of the U.S. escalated due to Trump's tariff war, exacerbating the dumping of U.S. Treasuries, with the 30-year Treasury yield rising to 5.02%, the highest level since November 2023. If this situation continues, the FED will need to intervene, which the bank's global head of forex strategy, George Saravelos, referred to as a "circuit breaker"—an emergency quantitative easing. He wrote: "If the recent volatility in the U.S. Treasury market continues, we believe the FED will have no choice but to urgently purchase U.S. Treasuries to stabilize the bond market."
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