While reading my OP remember the US Treasuries are a global systemic risk. This was not just in light of the UK meltdown. This also was looking at Japan and others beginning to sell US paper.
Wendy, this will be more Treasury doing the buying. The twist can be in either direction. The purpose can be in either direction. Yields on the long end of the curve currently could skyrocket. Yellen will reign them in but to what level? The curve wont be inverted by the time the dust settles.
Need to add this was agreed upon late last year between Yellen and Powell. I do not fully know how it will operate. The FED will have ideas and may even instruct the Treasury since that is within the power of the FED. The Treasury is the instrument for buying this time. That seems to have been Yellen’s idea.
To think she once lost a job because her boss was a dolt. He claimed he fired her for being short. Talk about misogyny.
I just added this note to the bottom of the linked thread.
Adding Note March 17, 2023
As this all unfolds the long end of the curve will rise. The FED/Treasury will let the curve’s inversion resolve. This means higher yields at the long end of the curve. The long end of the curve will be controlled mostly so there is no spiraling higher out of control in a crisis.
Higher yields cut off inflation.
Expect a rising unemployment rate in the 2H23
Expect gold, btc and eth to rise. Expect equities to fall.