Quick breakdown of Fed/Treasury mechanics that actually matter:

QE = Fed buys long-dated bonds, prints reserves. Private sector loses duration, gains cash.

YCC = Fed only steps in when yields hit the cap. Duration pulled only at trigger levels.

Operation Twist = Fed buys long, sells short. Duration shifts, reserves stay flat.

Treasury issuance mix changes = another form of twist. Impacts private duration without touching reserves.

Repo facilities (BTFP-style) = liquidity backstop. Reserves go up, forced selling pressure eases. Supportive but not direct demand.

Regulatory shifts = changes incentives for banks/dealers to hold duration. Doesn't alter reserves or total duration outstanding.

Key insight: In a zero reserve requirement world, reserve levels barely move the needle on credit conditions.

What matters: duration held by the private sector. That's where real financial conditions tighten or loosen.

Repo = push (prevents panic selling). QE/YCC = pull (active removal of duration).

Understand the difference and you understand half the game.