I was going to say, “this is what happens when the federal reserve quits buying up market assets.” But the federal reserve HAS NOT quit buying up market assets; it’s shifted into overdrive. WHY IS THE FEDERAL RESERVE RAISING MORTGAGE RATES (by raising overnight lending) WHILE DRIVING DOWN BOND RATES BY BUYING UP BONDS???? This is looking less like economic intervention and more like simply printing cash to pay to billionaires.
I don't know if they've been tapering their treasury buying or their repo buying (overnight lending) or both.