Why Are Traditional Investors So Hungry for Yield Curve Control?

<p><span style="font-weight: 400;">On today’s edition of The Breakdown’s Long Reads Sunday, our selections have to do with one of the hottest topics in central banking: yield curve control. </span></p> <p><strong>“</strong><a href= "https://www.stlouisfed.org/on-the-economy/2020/august/what-yield-curve-control#:~:text=How%20Does%20Yield%20Curve%20Control,to%2030%2Dyear%20Treasury%20bonds."><strong>What Is Yield Curve Control?</strong></a><strong>”</strong></p> <p><span style="font-weight: 400;">The first piece is from the St. Louis Federal Reserve and is a primer on YCC, including past U.S. implementations as well as versions from Japan and Australia. </span></p> <p><strong>“</strong><a href= "https://www.bloomberg.com/opinion/articles/2020-08-20/market-jitters-show-how-much-fed-s-yield-curve-control-matters?sref=qUxVp6JU"><strong>Market Jitters Show How Much Fed Medicine Matters</strong></a><strong>”</strong></p> <p><span style="font-weight: 400;">Our second piece is an op-ed about how dramatically markets reacted to this small detail from the Federal Open Market Committee minutes, and what it suggests for their desires involving YCC.</span></p>