If the Federal Reserve keeps tightening until core PCE inflation is below 2% on a YoY basis again, be it either by further rate hikes or more balance sheet reduction or a combination of both, then inflation will likely really collapse, and a lot of money can be made by owning the long end of the Treasury bond market.
Re UST holdings: I would argue the value of their UST holdings has fallen (price drop) because the interest rates have risen, no? How do you know they sold? It looks just like with the US banks, svb, first republic, etc.
Hi Chris.
Re UST holdings: I would argue the value of their UST holdings has fallen (price drop) because the interest rates have risen, no? How do you know they sold? It looks just like with the US banks, svb, first republic, etc.