Brian Chappatta, Columnist

Yield-Curve Control Is a Bond Trader’s Nightmare

Fed Governor Brainard makes a case for capping Treasury yields in a zero-rate policy environment, a move that’s roiled the market for Japanese debt.

November 27, 2019 at 3:05 PM UTC

By Brian Chappatta

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

A scary scenario for Treasury bond traders.
Photographer: Tim Boyle/Getty Images North America

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“Brainard — wow.”

That was how Russ Certo, managing director of rates at Brean Capital, summarized remarks this week from Federal Reserve Governor Lael Brainard. Ian Lyngen at BMO Capital Markets called her comments “remarkable.” I had the same feeling.