QT and balance sheets: what are you watching?

Quantitative tightening drains liquidity while rate decisions grab the headlines. The balance-sheet side of policy matters for bonds, funding and eventually currencies.

QT and balance sheets: what are you watching? — central bank rate path diagram
A central bank's policy rate path across recent meetings

What's your read?

  • how QT is affecting markets now
  • the liquidity signals you watch
  • how balance-sheet policy reaches your pairs
QT and balance sheets: what are you watching? — bid-ask spread diagram
The bid-ask spread on a currency pair

Background: QE and QT.

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