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.