
A May 17, 2024, Barchart article asked if the Fed sent a signal when it announced it would reduce its quantitative tightening program beginning in June 2024. I concluded:
The bottom line is plenty of room exists for a recovery rally in the U.S. long bond market as capital flows from equities to bonds. I am a buyer on dips, expecting bonds to recover as rates move lower over the coming months. Moreover, the Fed’s reduction in QT starting in June 2024 signals that more accommodative monetary policy is on the horizon.