Central banks only control short-term interest rates (when it does)

The Fed has 2 levers:

• The interest rate it pays to banks on the reserves held in their Fed account
• The interest rate it offers on the Reverse Repo Facility (RPP). The fact that you can lend risk-free to the Fed at a fixed rate puts a floor on the interest rate available,

Markets will then use the overnight rate set by the Fed as a reference to value the 1-week, 1-month, 2-months, etc. Treasury yield. It has little importance further out on the yield curve. This will thus only affect out-of-the-ordinary financing which typically uses short-term treasuries.

This failed on September, 19 2019