Marathon’s Richards Sees QE Possibility If Treasuries Rout Grows

The Federal Reserve will step in to support the US Treasury market if the recent selloff turns more disorderly, according to Bruce Richards, the chairman of Marathon Asset Management.

China is offloading the securities and then dumping dollars received from the deals, he said in an interview with Bloomberg Television, while hedge funds are unwinding their basis trade positions causing swap spreads to collapse. The wider market has also been selling as the risk of a spike in inflation returns.