May 15, 2022Liked by Fabian Wintersberger

Great article, thanks!

I think you might have it wrong here, though: "Not long ago, the US government announced that it plans to issue fewer bonds this year to reduce the deficit. But as institutional investors are obligated to hold government bonds because of regulatory reasons, lower supply will also drive bond yields higher."

If supply dries up because fewer bonds are issued and demand stays the same for regulatory reasons, the price of bonds will rise and yields will fall instead of rise.

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May 13, 2022Liked by Fabian Wintersberger

I think the regulatory changes are something that nobody is considering these days but is both likely and impactful

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