QT is shrinking Central Bank balance sheets. But is not reducing liquidity in any way that matters to financial markets. There are two reasons for this explored here: “The Fire Brigade” syndrome, which makes QE & QT asymmetrical and has nothing to do with economics and a lot to do with human behaviour. And the new “Operating Frameworks” being introduced by central banks, which enhances both control of monetary policy and liquidity risks.
Read more the embedded report.