We investigate how central bank balance sheet policies affect investor demand for government debt. As central banks embark on quantitative tightening (QT) to shrink their balance sheets, how different sectors will absorb government debt will largely depend on how sensitive their demand is to changes in the yields (or prices) of government bonds. We study compositional shifts in the investors that hold government debt in the euro area, Japan, the United Kingdom and the United States, and ask how different investor groups would respond under QT. […]