Part 7/13:
The Role of Central Bank Policies and Global Factors
Much of the narrative around bond markets has centered on the Federal Reserve’s Quantitative Easing (QE) policies and balance sheet expansion. Many believed that the Fed’s purchase of Treasuries kept yields artificially suppressed, leaving little room for rates to rise independently. Yet, despite multiple episodes of tapering and balance sheet reduction, Treasuries have remained resilient, with yields declining rather than exploding upward.