Further easing of financial conditions

TS Lombard's great Steve Blitz weighs in: "The real story will be a further easing of financial conditions at the back end of the yield curve because Treasury net new issuance drops to zero. The markets will need at least the $60bn/month the Fed will no longer be buying, and probably more than that. The Fed could expand QT in response, but that is unlikely, given how they are capping the rise in the funds rate and allowing financial conditions to ease."