An outstanding interactive chart of the 10-year Treasury yield vs. the Fed's various stimulus...

This news story has 6 comments:

Register or Login to rate comments »

User 502794 Comments (122)
 
you've got that backwards...you BUY treasuries with QE and SELL them w/out
20 Jun 2012, 08:53 AM Reply Like

idkmybffjill Comments (561)
 
Treasury yields go down with QE.....prices go up. SELL Treasuries with QE, buy without when yields go back up and prices drop.
20 Jun 2012, 09:00 AM Reply Like

User 502794 Comments (122)
 
yes, yields go down with QE and prices go up with it...therefore you BUY treasuries with QE
20 Jun 2012, 09:04 AM Reply Like

SA Editor Stephen Alpher Comments (491)
 
Am I the only one that can read a chart?

Treasury yields clearly rose sharply while both QE1 and QE2 were underway, and fell fast once the programs were halted.

The reasoning is that QE is stimulative, hence yields rise. The withdrawal of QE is relatively restrictive, thus yields fall back down.
20 Jun 2012, 09:28 AM Reply Like

dagoddar Comments (2)
 
Yes the chart tells the tale
Yields went up during QE
And my hedge using TLT has been good so far...
Looks like it is time to sell

Dave
Long TLT ... But not for long
20 Jun 2012, 09:32 AM Reply Like

Virg Comments (20)
 
QE or no QE..the real catalyst for rates spiraling downward has been the "flight to quality" trade related to Europe, in my opinion...If, and when, European problems are resolved enough to cause the press to turn to problems here in the U.S. and with no QE I believe interest rates will rise, i
20 Jun 2012, 09:50 AM Reply Like