SHORT ANSWER
The core idea
Quantitative easing can lower bond yields by increasing central-bank demand for securities, removing duration from private portfolios and signaling an easier policy stance.
THE MECHANISM
What is happening underneath
Investors displaced from purchased assets may rebalance into other bonds and risk assets.
MARKET INTERPRETATION
How investors should read it
The size of the effect depends on expectations, market conditions and whether the purchases were already anticipated.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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