Deutsche Bank: The Fed may conduct emergency QE to curb turmoil in the U.S. bond market

Planet Daily News: Deutsche Bank says that if the volatility that once pushed U.S. long-term borrowing costs above 5% continues, the Federal Reserve will need to stabilize the U.S. Treasury market. On Wednesday, concerns about the safety of U.S. assets escalated due to Trump's trade war, intensifying the sell-off of U.S. Treasuries, with the 30-year Treasury yield rising to 5.02%, the highest level since November 2023. If this situation continues, the Federal Reserve will need to intervene, according to George Saravelos, the global head of foreign exchange strategy at the bank, who calls this a "circuit breaker" - or emergency quantitative easing. He wrote: "If the recent volatility in the U.S. Treasury market continues, we believe the Federal Reserve will have no choice but to emergency purchase U.S. Treasuries to stabilize the bond market." (Jinshi)