The Fed announces plans to sell off its corporate bond holdings.

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The start to unwinding. The buying of $120B/month of T-Bills and MBS (mortgage back securities) is next. That’s when the yield will zoom and fed rates climb.

Goldonthehorizon

Didnt they purchase bonds in large banks which were sold overnight aka the reverse repo operations? Is this long term hold something different?

helpme_change_huhuhu

Isnt this normal course of business for the Fed, or is meant to highlight they are combating inflation by removing some liquidity from the market?

pradeepkanchan

Does this mean bond prices go up or down? Also automod really is cleaning shop huh

TheRealMossBall

I think the stock market seems to be muddling through right now. Wait and see approach. I think there will be a minor taper tantrum this fall. I’m guessing a surging economy and gradually rising interest rates. Wouldn’t be surprised to see a recession in 2024 or 2025.

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