RIP Bond Vigilantes: World of Endless QE is Here

from Zero Hedge

Authored by Bloomberg macro commentator, Garfield Reynolds

The Federal Reserve just moved us toward a world where central banks hold so much of government bond markets that nothing else matters. That’s a world where yields will stay lower forever not just for longer.

The Fed pledged to add $700 billion of bond buying after cutting rates back to the zero bound, and market reaction that followed hinted toward QE ad-infinitum.

The ECB will likely have to continue with its re-energized balance-sheet expansion and the BOJ at the very least is stuck with gradually adding to an already impressive pile of JGBs.

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