The central banks of the developed world are embarking on a new phase of economic policy as they engage in joint quantitative tightening (QT) for the first time. This coordinated effort marks a significant shift from previous monetary strategies. The European Central Bank (ECB) has reduced its assets by $2.66 trillion, while the Federal Reserve (Fed) has decreased its holdings by $1.78 trillion. Together, they have removed a total of $4.44 trillion in quantitative easing (QE) liquidity. This move is seen as a disinflationary impulse, contributing to falling yields and increased demand for notes and bonds.