QE also removes safe collateral from the market, mainly US Treasury bills, notes and bonds. this safe collateral is the backbone of wholesale debt markets, where financial institutions, including commercial and central banks finance and re-finance their positions

Illya Gerasymchuk 2025-08-19 10:30

however, eventually yield spreads will raise with high velocity. this is the larger financial crisis part of the cycle. there you will also see lower rates and more QE