Deutsche Bank Warns of Fed Intervention in US Bond Market

Deutsche Bank has expressed concern that sustained volatility in the U.S. bond market, pushing long-term borrowing costs above 5%, could prompt the Federal Reserve to intervene. If this trend persists, according to George Saravelos, Deutsche Bank’s global head of FX strategy, the Fed might need to utilize a ‘circuit breaker’ or emergency quantitative easing to stabilize the U.S. Treasury market.