Obviously, there are numerous reasons why (no matter what the economic situation is) the Fed will need to Taper (deficits [2], technical fragilities [3], and sentiment [4]). Furthermore, it seems the world is more than happy to give the central bankers the benefit of the doubt that not only is Tapering not tightening but that Tapering is a 'positive' as it means all is rosy in the world (despite our earlier point of the 'difficulty' that any actual unwind poses [5]). However, there is one big reason (highlighted further this morning in the TIC data [6]) why the Fed's Taper matters... they are (simply put) the only one buying...
5Y-30Y Treasury holdings...
[7]
Source: BofAML