According to this securities company, the Fed is currently employing multiple measures to support the U.S. government bond market amid yields on USTs reaching their highest levels since 2007.



In addition to lowering the policy interest rate, the Fed is trying to assist the U.S. Treasury in reducing borrowing costs. Recent meeting minutes indicate that the Fed is buying short-term U.S. government bonds to increase liquidity in the market.

Notably, although reserve balances have not increased significantly, the Fed's balance sheet is expanding at a rate of about $30 billion per month, higher than the shrinking rate during the 2024 QT phase (around $25 billion per month). According to VDSC, this suggests that the Fed will continue to support the U.S. Treasury through these market actions.
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LIONMESSI
· 06-01 04:12
gogogogogogogogo
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