it is by definition a taper. it is less in preprogrammed spend....

it is by definition a taper. it is less in preprogrammed spend.

but taper in itself is really not relevant. no one who understands it has suggested it was

$120bn or $105bn or $90bn in monthly bond purchases is still massive liquidity and by that rate curve suppression

the question is what point does falling excess liquidity stop inflating the debt and equity markets.

No one knows the answer to that.

what Australia's 2yr yield explosion showed is that the shock can be very quick and large - and impact on economic activity potentially very very large


but whether thats at $100bn in monthly bond purchases - or zero in bond purchases - or zero + 3 rate hikes

thats the question

a few years ago the global markets went into absolute conniption because of lack of liquidity with US 10yr at ~2.75%

After more years of zombie corp finance and worsening US financial setup - its likely the critical threshold is lower


Which is why they are tapering in drips