Illya Gerasymchuk
Entrepreneur / Engineer
once FED lowers interest rates, it’s likely to put downward pressure on yields - assuming term premia doesn’t increase by more in the end, the yields will be higher than in the last 20 years, for the same FED funds rate QE/liquidity injections will further devalue USD
liquidity abundance leads to the narrowing of spread between riskier and safe assets (mostly government bonds) safe assets fall in price, with their yields increasing towards the riskier ones US bond yields are high under tighter monetary conditions - liquidity is pro cyclical
