Bank of America believes that the Fed's treasury securities purchase operation may put pressure on the 10-year Treasury yield
2025-12-12 18:13:35
The Fed's purchases of treasury securities to keep the banking system flush with cash could depress long-term yields, according to interest rate strategists at Bank of America. Wall Street strategists widely expect the Fed's reserve management purchases (RMPs) - coupled with its decision in October to use the proceeds of mortgage-backed securities on its balance sheet to buy treasury securities - to absorb most of the net supply of treasury securities over the next year.
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