Treasury Yield Snapshot: QE2 and the 2-10 Spread

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 |  About: iShares 7-10 Year Treasury Bond ETF (IEF)
by: Doug Short

Here's a weekend-week update on Treasury yields, an area of especial interest in light of the Fed's QE2 strategy. The first chart shows the daily performance of several Treasuries and the Fed Funds Rate since 2007. The source for the yields is the Daily Treasury Yield Curve Rates from the US Department of the Treasury and the New York Fed's website for the FFR.

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Spreads are widening, which should be pleasing to the Fed, but the dramatically rising yields at the short end are presumably not what the Doctor ordered. The next chart shows the 2- and 10-year yields with the 2-10 spread highlighted in the background.

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The final chart is an overlay of the CBOE Interest Rate 10-Year Treasury Note (TNX) and the S&P 500.

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For a long-term view of weekly Treasury yields, also focusing on the 10-year, see my Treasury Yields in Perspective, which includes a chart series I update monthly or more frequently if warranted.

Disclosure: No position