Fed meetings may not be the biggest mover of the bond market, Societe Generale said.
AdvertisementAdvertisementDespite US bond yields plunging after Wednesday's Federal Reserve meeting, central bankers may not be moving the market as much as other factors, according to Societe Generale.
Another factor elbowing yields higher is the Bank of Japan, according to Edwards.
AdvertisementAdvertisementThis week, the BoJ further loosened its grip on bond yields, marking another step back from its so-called yield curve control policy meant to stimulate the economy by keeping interest rates low.
"That pressure intensified at exactly the same time as it became apparent just how gargantuan US Treasury issuance had become," he added.
Persons:
—, Albert Edwards, Fedspeak, Edwards
Organizations:
Societe Generale, Bank of Japan, Service, Reserve, Treasury, Treasury Department