Quantitative tightening may draw reticent short-term investors back into Treasuries, although some analysts believe that, "from a cash-market perspective, nothing will change when the first bill runoff takes place on Thursday."
Despite the geopolitical tensions, the Russian government is making payments on its sovereign debt and Western governments are allowing circuitous transfers to get those funds to the debt holders.
But unwinding holdings—most of which are in index funds, not direct investments—is complex and could mean losses, as these assets are trading at deep discounts and liquidity is scarce.
Fed's presence is distorting markets, squelching volatility, supporting stock price growth, and curbing Treasury yields at levels that do not reflect market sentiment.