FLGV - Has The Fed Launched A Yield Curve Control Policy For Treasuries?
The Federal Reserve has publicly disclosed it's considering it, and many commentators have analyzed the implications. Officially, the central bank is conducting "further analysis" on so-called yield curve control (YCC). But looking at the flat trend in the 10-year Treasury yield in recent months raises the obvious question: Has YCC already started?
For the uninitiated, YCC is a commitment by a central bank to buy a sufficient quantity of long-term bonds to keep the rate from rising above a specific target yield. The goal: stimulate the economy by suppressing interest rates to levels below levels