USTB - Where are Treasury yields headed as the Fed embarks on quantitative tightening?

The beginning of so-called quantitative tightening commences on Wednesday as the Fed lets bonds mature off its $9T balance sheet without replacement. It's a big step for a central bank that conducted unprecedented bond purchases from March 2020 to March 2022, which were intended to blunt the economic fallout from the coronavirus pandemic. The pullback comes at a time when the Treasury market is already grappling with periods of volatility and low liquidity, and there are many unanswered questions about the effects of the new policy regime. Snapshot: Yields should technically move higher in response to QT, while the curve should steepen, due to a tightening of financial conditions and money supply. However, the direction of yields is also highly-dependent on other economic factors, like expectations of Fed interest rate hikes, the U.S. economic outlook or greater regulatory constraints. Other feel that any outsized impacts will rather show up in

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Where are Treasury yields headed as the Fed embarks on quantitative tightening?