Renowned hedge fund manager Michael Burry recently raised a thought-provoking point — the US bond market may be undergoing a profound transformation, with a trend toward nationalization subtly emerging.

A review of recent Federal Reserve actions provides clues. On December 1, 2025, the Federal Reserve officially announced the end of quantitative tightening (QT), concluding a cycle of balance sheet reduction that lasted over three years. Just 11 days later, on December 12, the Fed moved again, beginning to purchase $40 billion worth of government bonds. What does this shift signify? It marks the first expansion of the Federal Reserve's balance sheet since 2022, signaling a formal transition from tightening to easing monetary policy.

From the end of QT to the initiation of bond purchases, the Fed's stance has shifted quite rapidly. This change in the bond market precisely reflects the process of nationalization that Burry has been warning about — central banks gradually deepening their involvement and expanding their influence. This will create ripple effects across the entire financial ecosystem, especially impacting asset classes that are sensitive to liquidity.