Praying for Yield Curve Control

The yield on the 10-year US Treasury note declined 17 basis points to 4.51%. This was triggered by the US Fed declaring it would reduce the pace of quantitative tightening, implying less selling pressure on term bonds. Was this Powell giving in to pressure to reduce interest rates, without appearing to do so? And if so, was the sharp rally in the yen justified?

Let’s take these two issues in turn. First, yield curve control, or better described as a policy of suppressing bond yields along the cu...