How can Treasuries really selloff when the Fed is in there buying huge chunks every day? It is a surprise that it has sold off this far already this year. If we don't have QE3, Treasuries will gradually go back to being a natural market. And that probably goes for the equity market as well.
cos the bond market is smart. the fed buying isn't real demand. like when the bank of england tried to buy and support the pound before it crashed.
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