THE 39 YEAR BEARISH MARKET IN THE 10-YEAR TREASURY YIELD LIKELY COMPLTED LAST YEAR WHEN THE YIELD HIT A RECORD LOW OF 0.664% AND A NEW TREND STARTED
WHAT ABOUT THE US FEDERAL RESERVE REALLY HAS UNDER THIS HYPOTHESIS TO DO ?! I DO THINK THIS IS A HOTLY DEBATED TOPIC ON WALL STREET RIGTH NOW
THE MOST AGREEING THAT THE FED WOULD BE LIKELY TO ACT IF 10 YEAR YIELDS ROSE TOWARDS THE 2.0% LEVEL THAT IS A NIGHTMARE FOR INVESTORE.FED OFFICIALS SIGNALED THAT THIER FIRST OPTION WOULD LIKELY TO BUY MORE LONGER MATURITY DEBT RATHER THAN SHORT TERM DEBT,GIVEN THAT THE LAATER IS SEEN AS WELL ANCHORED AMID EXPECTION FOR LOW INTEREST RATES FOR AT LEAST THE NEXT THREE YEARS
IF THE ABOVE FAILED TO KEEP BOND MARKETS IN CHECK, THE FED COULD TO EITHER INCREASING THE PACE OF MONTHLY TREASURY PURCHASES OR BY IMPLEMENTTING A YIELD CAURVE CONTROL PLOLICY, DESPITE THIS IS NOT THE FED‘S PREFERRED OPTION
NOTE: 2.075% WOULD BE THE MINIMUM TARGET FOR THIS WAVE
