[henron]

T bond yields are determined by auction, so the Fed does not have full discretion over long term interest rates. That's why the 30yr yield has fluctuated between 1.6-2.5% this year even though the overnight rate has not changed.

[nostrademons]

The Fed is a participant in that auction with a large ($80B/month) budget and a target interest rate of 0-0.25%, though. You don't have much of an incentive to bid low if you know the Fed is going to swoop in and buy the bonds anyway.

[panarky]

Through July, $11.5 trillion of new Treasury securities have been issued.

The Fed buying $80B/month is less than 5% of what was issued.

Source: https://www.sifma.org/resources/research/us-treasury-securit...