Investment Bank: If bonds continue to fall, the Federal Reserve will urgently implement Quantitative Easing (QE)

Golden Finance reports that Deutsche Bank says if the turbulence that once pushed the long-term borrowing costs in the United States above 5% continues, the Federal Reserve will need to step in to stabilize the U.S. Treasury market. On Wednesday, due to Trump's tariff war, doubts about the safety of U.S. assets escalated, exacerbating the sell-off of U.S. Treasuries and pushing yields on 30-year bonds up to 5.02%, their highest level since November 2023.

If this situation continues, The Federal Reserve will need to intervene - a move George Saravelos, Global Head of FX Strategy at Deutsche Bank refers to as a "circuit breaker" or emergency quantitative easing. He wrote: "If recent turbulence in US Treasury markets continues we believe there is no choice for Fed but an emergency purchase of US treasuries in order to stabilize bond markets."