Plunging government bond yields could complicate the Federal Reserve’s plans to exit the US mortgage market, according to one of the pioneers of the central bank’s bond-buying programme. The central bank has been one of the biggest buyers of mortgage-backed securities since the financial crisis, racking up a total of almost $1.8tn at the peak, as it looked to cap the cost of home loans for a generation of borrowers as part of a broad “quantitative easing” programme.
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