Interesting graph from Morgan Stanley

Plenty of talk lately of How Monetary policy has reached its max Effectiveness and that Fiscal policy will have to take up more Of the Stimulus for an Economy. One function will be to steepen the yield curve without more QE, This is likely inevitable.below shows the increase in US banks holdings of treasuries with an inverted overlay of 10 year yields.Not a surprise as bank holdings increase yields drop, when the days comes when QE isn’t the answer and tax cuts and other Government measure are yields bound to rise .

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