The behavior of Treasuries is an area of special interest in light of the Fed's QE2 strategy. I've been posting frequent yield snapshots here. Recently my chart showing the percent change in yields since the onset of QE2 has been showing some signs of selectively topping out.
The yields had been increasing in November and much of December. However some of them (the 2-, 3-, 5- and 7-year) have contracted slightly over the past two weeks. Is this the beginning of a more sustained reversal or a manifestation of short-term volatility? We'll want keep an eye on this behavior.
Disclosure: No position