Bank of America believes that the Federal Reserve's Treasury purchase operations could put pressure on the 10-year U.S. Treasury yield

Gold Financial News reports that a rate strategist at a U.S. bank stated that the Federal Reserve’s purchase of Treasury securities to maintain ample cash in the banking system could suppress long-term yields. Wall Street strategists generally expect that the Fed’s reserve management purchases (RMP) operations — along with its October decision to use mortgage-backed securities (MBS) proceeds to buy Treasury securities — will absorb most of the net supply of Treasury bonds over the next year.

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