Quote:
Originally Posted by opendoor
And beyond the policy rate, the Bank of Canada is currently selling off a ton of bonds, which will tend to raise the yield. Just in the last month, they've sold off (or not rolled over) almost $30B in Federal government bonds which represents about 3% of the total outstanding value in existence.
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Wait, honest question - why does government selling off bonds increase bond yields? Is it that they have to raise yields to keep it attractive?