Central banks around the world are buying bond ETFs. Japan has been doing this for years.

The Federal Reserve started buying U.S. bond ETFs in March 2020 in order to keep yields down and liquidity flowing in debt markets.

IAGG is an international bond fund but it too is seeing central bank action.

On Thursday, April 9, 2020, we detected a huge dark pool buy order at 8:52 AM that pushed IAGG higher.

While this was likely bond buying from the BOJ and not our own Federal Reserve, I think the Fed buying U.S. bond ETFs has made other central banks scramble to do the same thing. If other central banks outside the U.S. do not follow the Fed and buy their own bonds, their yields will rise relative to our own and their currencies along with it. In other words, IAGG is indirectly benefiting from U.S. central bank bond buying.


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