The Beginning Of The End Of Calm Bond Markets

Via Kevin Muir of The Macro Tourist blog,
Although the market is convinced the Federal Reserve will get aggressive with their rate hikes, I am not sure market participants have thought this through. Let’s not forget the Federal Reserve is sitting on the largest balance sheet in history.
This portfolio is the result of years of Quantitative Easing. It was made riskier with the Fed’s “Operation Twist” that extended the duration of their balance sheet by buying long dated securities while selling shorter ones.