[ Loosening money Event -> More inflation soon -> Tight money soon ]
- -> [ at the Short-end :
- { pre-Event coupons } are marginally Larger than { New treasury coupons }, so
- { Buy pre-Event debt }, thereby
- lowering yields to match Event ]
- -> [ at the Long-end :
- { pre-Event coupons } are marginally Smaller than { Expected future treasury coupons }, so
- { Sell pre-Event debt }, thereby
- raising yields to match Expectations for the future ]
... study notes, on end-2024 bond markets.
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