Some Good News for Bond Traders Stuck in Fed Waiting Game
- Treasury buybacks, QT slowdown are ‘good backstop’ for market
- Ebbing volatility is also a positive as yields settle in range
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
Bond traders who are stuck in a waiting game over Federal Reserve rate policy will soon get some welcome support.
Starting on Wednesday, and for the first time since the early 2000s, the Treasury Department will launch a series of buybacks targeting seasoned and harder-to-trade debt. Then in June, the US central bank is set to begin tapering the pace of its balance-sheet unwind, known as quantitative tightening, or QT.