Fed’s decline does not take the wind from the sails of the Treasury market

The performance of the Treasury market in recent weeks again indicates that the notion of a clear link between central bank asset purchases and yield movement remains weak.

While the Federal Reserve used bond purchases to prop up the economy, an unorthodox strategy during the financial crisis and its aftermath now elevated to a normal part of its monetary policy toolkit, economists have struggled to gauge what the central bank gets from buying it.

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