- Yields on the longer end of the UST market have been declining lately, which is consistent with the Fed telegraphing an end to its QT campaign.
- Continued deterioration in US banks’ liquidity condition may justify an exit from QT, as improving the liquidity condition and keeping the credit pipeline open will be crucial to sustain the US growth outlook.
- How the Fed time and communicates its exit from QT will be instrumental in determining whether the policy will be a boon or a bane for the global market.
